Vantage FX (www.vantagefx.co.uk) look at how technical analysis can help news traders and swing traders.
News and Swing Trading Week
In this part of the series we are examining a 4-hourly EUR/USD chart in order to analyse the technicals from a news trader's perspective. Beginning with NFP Friday we can see that the day's low was at a 50% retracement level followed by a strong bounce in the shape of a pennant formation. Normally we break out of a pennant two thirds of the way through, as shown. Based on cycle theory, by examining the important interim lows we can see a pattern emerging of low points at 18:00 once every two days.
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