Krelian99 wrote: ↑
Tue May 01, 2018 10:12 pm
rijay wrote: ↑
Tue May 01, 2018 7:29 pm
USD is strengthening after taking support at 200 EMA in monthly chart, so its strength will not be short lived.
why do not you try using basics like moving averages to reinforce your sr levels rather then to try trading on naked charts ! and not knowing whether sr will hold or not. just a quick look at moving averages to define which sr will hold or break will aid in not loosing money .
I trust neither the SMA200 nor the EMA200 in FX. In indices it is ok, since most indices only know one direction.
The price on USDJPY Monthly converges in a triangle, so a MA doesn't give usefull information. Indeed, I didn't take a look on Monthly, where SMA200 (SMA are more reliable for USD pairs) and EMA200 cross. Interesting. The S/R is there good as well. RSI14 is at a TL.
USDJPY M1 S_R.png
Better still is to analyze USD index rather then to analyze individual pairs.
All real turn around in individual pairs will be marked by turn around in USD index.
USD index taking support at 200 Ema in monthly chart, bouncing fast to avoid death cross on weekly chart , with record short position on USD all tells the story.
And if king USD starts moving, all currencies need to adjust for it, weaker currency will feel the heat the most.