Only registerd users (ie TerraSeeds Tflow® graduates) can view this post. Graduates please log in with your UID and password that you use for Forum. Find out how you can be part of our privileged trading community. Email forex@terraseeds.com

This is a simple tip for MT4 users.

Before:

The Fibonacci tools are wonder ful and essential for trading but after plotting them on the chart, price levels corresponding to the Fib levels are not displayed. For illustration, see ”50%’ retracement level on chart. To get the precise reading, you may have to use the crosshair function.

After:

By going to ‘Fibo properties’ and adding ‘=%$’ to the description cell for each fib level, you can see the price level displayed beside the fib level like ’23.6=1.32038′.

Tweaking MT4

Fibonacci ratios are remarkable when applied to FX trading. The recent consolidation of EURUSD on its intraday 1- and 4- hour charts display its tendency to follow fibs.

Captured on the 4-hour charts, we can see the following:

• Point C is the 76.4% retracement of A-B
• Point E is the 76.4% retracement of C-D
• Point F is the 76.4% retracement of D-E
• Point G is not an established turning point on the 4-hour chart (although it may be on the 1-hour). It is however at the 61.8% retracement of E-F.

Fibs in motion

There is no reversal of daily chart yet although there is a hint on the H4 chart. Price movement in both directions in the past 2 days are very strong so be mindful of volatility ahead.

City Index is running a total of 9 educational Technical Analysis Seminars from 22 July 2009 till 24 September 2009.

These are organised in 3 levels of sophistication:

Basic

* Moving Average
* Moving Average Crossover
* Support & Resistance
* Trading with Oscillators

Intermediate

* Bollinger Bands
* Japanese Candlestick Patterns

Advanced

* Chart Patterns
* Fibonacci Ratios

Trainers from TerraSeeds Market Technician Pte Ltd are speakers at these seminars. More information can be found at http://www.cityindexasia.com.sg/learn_to_trade/seminars.aspx

The Euro has a consolidation pattern that may hint of a continuation move. We see a support (A) above the 50% fibonacci retracement level and the trading in the past 24 hours show indecisiveness. In order to move out of the current triangle, Bulls have to clear the common resistance trendline (1) followed by the extreme resistance (2).

EUR in consolidation pattern with hint of continuation

The EURCHF has a similar setup

EUR support and resistance still valid

Whether last night’s news was really a surprise is questionable but we find that the market or more importantly the charts contain a lot more predictive value.

A low-high (March) fib measurement of the EUR on the daily chart will show that yesterday’s trading low for the was really a 23.6% retracement support. This was also confluence of an equidistant channel that could be drawn using points which were already available over the past few days.

A 170 pip rally brought the EUR to the top of the channel and touching the resistance nicely. It really isn’t a surprise. Its a bet of 30 pip stop versus a 170 pip target.

What’s more, until the channel is violated conclusively, it is still valid.

We have a confluence of resistance for the USDCHF including key fibs, trendlines and some horizontal levels.

Potentially equidistant channel + Fib 76.4.

Together with the previous high at 102.00, we might see some resistance before price is able to clear.

FX is steeped in the use of Fibonacci levels. The A-B-C reveral pattern of higher-low  is also a 50% retracement level.

Things may be falling into place for a key decision to be made. We got the USDJPY at a 38.2 retracement (106.67) of the weekly high-low which is likely to act as a strong resistance.

In the meantime, EURUSD is supported by the 61.8 retracement (1.5566) of the daily high-low while gold is also likely to have strong support at USD 886.

There is a confluence of supports here at this moment for the Cable. Besides a throwback to the previous resistance trendline, there is an addition of 55ma on the 4-hour chart as well as monthly and weekly pivot M2. If the 1.9600 to 2.0024 move were to qualify as a bullish wave1, the current down (potential wave2) may retrace to 1.9762 region to make a 61.8% retracement.