Wednesday, April 22, 2009
Technical Analysis on EURUSD
In this short-term graph the areas where the wicks (shadows) of the candles touch the Bollinger Bands are in orange.
As you can see, when the upper wick touches the upper Bollinger band, this indicates a trend change. Signals that a reversal begins.
When the bottom wick is below the bottom band is starting un up signal.
As shown in the graph, this pattern is quite accurate; therefore, it is important to understand its implications.
Also highlighted in the MACD chart when long-term averages cross with the shorter term. As you can see those areas marked with a red circle, crossing of averages is a signal that strengthens the signals that the Bollinger bands give to us.
Press the chart to enlarge