Thursday, November 06, 2008

Forex - Watch The U.S. Dollar



Above we have a chart of the U.S. Dollar and you'll notice there is a symmetrical triangle formation beginning to emerge and take shape. Symmetrical triangles are one of my favorite technical patterns to trade because they are usually reliable and the moves out of such a pattern can be rather swift.

I personally use this triangle pattern as a continuation pattern which means in the above example I will only be looking to trade a bullish breakout and I will ignore any break to the downside. As always we'll see what happens.

2 comments:

banman said...

Hi Kevin,
I was just wondering if you would consider HDD as a viable choice if the USD breaks down since it's and inverse USD etf? Thanks

Chris

Kevin said...

I've never traded HDD so I can't give you an answer. I'm not sure how liquid HDD is.

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