7/7 Forex

Nine new breakouts among the 124 currency pairs I follow, three with strong trends.

Strong-Trend Breakouts

sym	phase	adx	bday	blevel	stop	atr	atr%
GBP/CAD+		27	jul7	C$1.5389	C$1.5517	0.0128	0.8%
GBP/NZD+		32	jul7	NZ$1.9269	NZ$1.9462	0.0193	1.0%
GBP/SGD		32	jul7	S$1.9609	S$1.9741	0.0132	0.7%

Major currency pairs, which carry lower margin in the United States, are marked with a plus sign (+) after the symbol. My holdings are marked with an asterisk (*).

GBP/NZD alone of the strong-trending breakouts has a significant carry bias, aligned with the direction of the breakout, and the spread is under 200 basis points.

Weak-Trend Breakouts

sym	phase	adx	bday	blevel	stop	atr	atr%
DKK/ZAR		17	jul7	R1.2853	R1.2983	0.0130	1.0%
EUR/NOK+		11	jul7	Nkr7.7204	Nkr7.7730	0.0526	0.7%
EUR/ZAR		17	jul7	R9.5822	R9.6789	0.0967	1.0%
GBP/AUD+		21	jul7	A$1.4885	A$1.5017	0.0132	0.9%
GBP/ZAR		20	jul7	R10.7635	R10.8697	0.1062	1.0%
NZD/JPY		16	jul7	¥67.411	¥66.760	0.651	1.0%

Major currency pairs, which carry lower margin in the United States, are marked with a plus sign (+) after the symbol. My holdings are marked with an asterisk (*).



Key

• phase: Green for a bull-phase breakout, red for a bear phase.
• adx: Average direction index location, indicating the strength, or the temperature, of the trend. Orange for 40 or greater, aqua (light blue) for 25 and up but below 40, magenta (light purple) for 20 and up but below 25, and brown for anything below 20. (Mnemonic: Orange for the overhead sun, blue for the surrounding sky, magenta for sunset on the horizon and brown for the earth.)
• bday: Breakout day, the day the price broke through the upper or lower 55-day price line.
• blevel: Breakout level, the price level of the line that was broken through.
• bstop: The stop/loss price calculated on breakout days as the 14-day average true range below the breakout-day low for a bull phase and above thre breakout-day high for a bear phase.
• atr: The 14-day average true range, in the same currency as the price.
• atr%: The average true range as a percentage of the breakout level, an indicator of volatility that is comparable for all potential trades.

About channel analysis

Read a detailed explanation of my channel analysis method, including trading rules.


The trader’s greatest sin is inaction. Sleeper, awake! Seize the Nietzchean moment. Roll out of bed and trade.