CADJPY - Buying the ascending Triangle

I hope... and I hope this will be a quick trade. A nice ascending triangle was formed on CADJPY renko and the resistance was broken, tested and this pair looks ripe heading towards 95.536.

CADJPY - Renko, Ascending Triangle

Combining Renko and Candlestick charts

Renko charts are great in terms of understanding what price is doing minus all the price spikes or wicks we get to see in Candlestick charts. However, a confluence between Renko and Candlestick charts can be a great way to gain confidence in a trade.

In this article, I present the USDJPY trade idea which combines renko and candlestick charting. Readers might know about a bearish call made on USDJPY here. Nothing has been changed on the analysis.

USDJPY - Renko Charts - Bearish Flag

To summarize:

• A major triangle was formed, which gives a target to the upside breakout at 106.864
• Price rallied 3/4ths only to reverse and start making lower highs (figuratively) and higher lows, indicating consolidation taking place
• During the process a bearish flag was formed, where the high of the flag managed to kiss 61.8% of the most recent leg to the downside.
• The bearish flag gives a target to 98.303
• I suspect a retracement to 38.2% at 102.657 before price drops lower.

Now switching to the candlestick charts and measuring the previous leg up with Fibs gives us the respective fib levels.

USDJPY - Candlestick Charts

• On the candlestick charts, we notice a triangle pattern set in place
• When measuring the previous leg up, we see a retracement to 50%
• We also notice what seems like a head and shoulders pattern being formed. If this holds, it gives us a downside target to 99.108

What to look for:

• Price shouldn't head to 102.657 and should reverse and move into the median line.
• In such an event, we can short USDJPY at 101.635 with stops at 102.657
• Trades could be moved to break even at 100.965 and book partial profits at 100.23 and 99.1 and finally 98.3 with stops moved to 100.23 to make the third trade risk free.

EURNZD - Waiting for the retracement

Today's RBNZ Wheeler expressed concerns of the appreciating Kiwi Dollar. Against most of the pairs, the NZD has been weakening. The EURNZD offers a good trade, besides the fact that EURNZD shorts also attract positive overnight swaps.

The chart below depicts the trade idea. It might seem a bit confusing but its quite simple. Just follow the explanations based on the markers.

EURNZD - Renko Chart, Trade Idea

1. A triangle pattern is formed which was validated by a downside break out. The triangle gives a target to 1.5229. The break out failure is to be seen as a retracement that usually happens to all break outs.

2. I plotted a mini AML and the retracement looks to end at 1.6278. Typically prices tend to deviate after hitting the median line (and not to forget that prices hit the median line 80% of the time).

The level of 1.6278 sits right between the 50 - 38.2% retracements of the major leg down and the minor leg down. This gives us a reversal range between 1.6488 & 1.62324 and 1.6278 sits right in between these two levels, which if you look to the left has formed interim support during past rally and looks set to act as resistance to this short term rally.

3. The very light AML gives the long term picture. Price failed to reach the median line indicating a change of trend.

Putting it together, we can take a short positioon at 1.6278 targeting 1.5229. For stops, above the break of the trendline from the major AML at 1.6698 gives a total RR trade of 2.5, with the potential to make 350 Pips.

USDJPY - Bearish Flag on Renko

USDJPY - Bearish Flag

Looking to sell USDJPY on retest of the bearish flag, targeting 98.3

AMD - Symmetrical Triangle Break out Renko

AMD - Renko Charts 22/04/14

Came across this pattern with the Marketinout stock screener.

Duke Energy (DUK) - Renko Alert

Duke Energy - Renko Symmetrical Triangle Breakout

Came across this pattern with the Marketinout stock screener.