Okay, I'll start with my daily analysis (just a newbie analysis mind you :D) on some pairs I regularly watch everyday (it's low spread wide range pairs :D). My analysis is only on intraday basis since that's how I trade, but this analysis technique can be applied and work well on longer term basis.
I'm starting to use a much more simpler setup than usual because I basically love simple stuffs and hate to complicate things (I would trade naked chart if I could, it's just that, I can't LOL).
My setup consists of range calculator, KG Balance (KGB, that's a modified fibo used to measure buyers/sellers strength) and LSMA (this is to determine the direction), and Heiken Ashi for the trigger.
This setup is based on KG's concept of wave, buyers/sellers strength, and regression.
The basic idea is we want to measure who's in control of the market at the current wave, set some critical levels to watch (some people might call these levels s&r or pivot, whatever, it's just a name) and see the tendency of price direction.
One thing to keep in mind is, in KG analysis concept the very basic tenet in chart analysis is: NOBODY KNOWS WHERE AND HOW FAR THE PRICE MIGHT MOVE
And one more thing, since Tokyo is closed today we might expect low volatility (boring) today until Europe session later today, but this analysis is valid regardless.
Okay, let's start with AUD/USD
The current downwave from point B is the reactional wave of the upwave A-B. So we'll use the upwave A-B as our basic reference.
As we can see the price is already below level BS (1.0032). This level is the balance, where buyers and sellers at about equal strength. So if price is moving down away from this level, we can assume that sellers start to take over.
This is confirmed by the direction and shape of the LSMA. So the next logical level to watch is the level S (or sellers, at 0.9948). This level is where the buyers/sellers strength is at 25%-75% in sellers favor.
If this level is broken, then we can assume that sellers have total control of the market and might push the price lower, altough we don't know yet if they can set a new low lower than previous low.
But if price bounces at this level, then we can assume price is still consolidating and will move in range around the level BS and S.
Watch the LSMA and price action to confirm direction.
Next is EUR/USD
Again, I'll draw KGB level from A-B as our basis.
Here price is coming from above testing the level S (sellers, 1.3567). This is a critical level that determines whether sellers can totally control the price or not.
If this level is broken, then sellers will try to push the price lower and might test the previous low.
Otherwise it will be still in balance area, or consolidation, and price will range around level S and BS.
Again, watch the LSMA and price action for confirmation.
And now GBP/USD
Okay, the KGB A-B is our basis here.
As we can see price is below the level BS (1.6098) and trying to test the level S (1.6054). So again, we have this level as a critical level to watch.
If it's broken, then sellers will have total control of the market, otherwise it will be still ranging around the BS and S.
And again, watch the LSMA and price action for confirmation.
Allright, only these three pairs for today since I really have something to do. Hope I can be back early before Europe session today, wish me luck :D
Hope it helps, happy trading and have alot of green pips \m/\m/
DISCLAIMER: This analysis may change anytime according to market condition without prior notification, and always trust your own analysis and system :D
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