As many of my regular readers of these articles may already know, I am a big believer in recognizing the mental challenges which trading brings to us all in the ongoing quest to attain and then maintain consistency.

The next few parts of this series on personality type and trading will examine the four dimensions of personality developed by Carl Jung and how each of them might influence you as a trader:

Today we sit down with Elliott Wave International's Futures Junctures Editor and Senior Tutorial Instructor Jeffrey Kennedy to discuss his favorite wave pattern of all: the diagonal.

EUR/USD h1

Scale of operation - Minuette

Current situation:

During the Asian session the price was below the resistance level 1.2742 of the channel 12/ML Minuette Wave Level Pitchfork lower limit. But it remained within the borders of 1/2 ML Pitchfork channel of the lower scale of operation Micro 1.2688 <-> 1.2717 <-> 1.2742 and therefore, today, on January 17, 2012, the price movement will depend on development of the resistance level 1.2742.

Elaboration of movement directions:

-> In case the resistance level 1.2742 of the channel 1/2ML Minuette lower limit is passed through, the price will continue the movement within the borders of the Pitchfork balance area of the Micro lower scale of operation -> 1.2803 <-> 1.2839 <-> 1.2863.
-> If the price is lower than 1.2742 then the price movement will be identified within the borders of the channel 1/2ML Micro -> 1.2742 <-> 1.2717 <-> 1.2688. If the resistance level of the Channel 1/2ML Micro lower limit (1.2688) does not stop the descending movement then the price will return to initial line of 1/2ML Micro (1.2688) Pitchfork and will reach the LTL Minuette (1.2613) guide line as possible option.

EUR/USD m15 & m5

Micro and SubMicro scales of operation

Elaboration of resistance and support levels.

Performed by Oleg Khmelevskiy, Analytical expert
InstaForex Companies Group © 2007-2012

Overview:

The EURUSD's resistance has been broken and it turned into support near the price of 1.3200 last week (24th - 28th of December, 2011), therefore the pair has already formed a strong resistance at 1.3215. Moreover, after it had not managed to close above 1.3216 and the pair started showing a bearish market at this level, it became notable that these levels coincide at strong levels for bulls on H4 chart, and the pair formed a strong resistance at the level of 1.3215. So the pair will have a downside momentum which is rather convincing and the structure of the downfall looks not corrective, in order to indicate a bearish possibility below 1.3215, thus it will be a good sign to sell below 1.3215 with the first target at 1.3020 and it will call for a downtrend in order to continue being bearish towards 1.2940. However, it should also be noted that the price has still been trapped between 1.3215 and 1.2850. As well as that the RSI and the last strong support (around the double bottom (1.2857) on H4 chart) are still calling for uptrend at this level. So the market indicates a bullish opportunity on level of 1.2857 on H4 chart with a first target of 1.2940 (Pivot point), and continue towards 1.3020.

Trading Recommendations:

According to previous events, the price has still been trapped between 1.32 and 1.2850.

Buy above 1.2855 with target at 1.2940 then 1.31.
Below 1.32 look for further downside with a first target of 1.3020 then 1.2940.

Technical Levels:

R3:1.3020
R2:1.2995
R1:1.2964
PP:1.294à
S1:1.2908
S2:1.2883
S3:1.2852

Observation (s):

Please check out the market volatility before investing, because the sight price may have already been reached and scenarios become invalidate.

Buyers are BIDding at a lower price.

Sellers are ASKing for a high price.

Performed by Mourad El Keddani, Analytical expert
InstaForex Companies Group © 2007-2012

Pivot Point: 1.3062.

Time Frame: H4

Overview:

The EURUSD's resistance has broken and it was turned to spport around the price of 1.3216 last week (12nd -- 16th of December 2011), therefore the pair has already formed a strong resistance at 1.3216. Moreover, after it could not close above 1.3216 and the pair started signing for bearish market on this level, it is noting that these levels are coinciding on a strong levels for bulls on H4 chart and the pair has already formed a strong resistance at this level of 1.3116. Therefore the pair will be a downside momentum is rather convincing and the structure of the fall looks is not corrective, in order to indicate a bearish opportunity below 1.3216 for that it will a good sign to sell below 1.3216 with a first target of 1.32 and it will call for downtrend in order to continue bearish towards 1.3062. However; It should also be note that the price has still been trapped between 1.2950 and 1.3150. Aswell the RSI and last strong support (Around the double bottom (1.2950) on H4 chart) are still calling for uptrend at this level. So the market indicates a bullish opportunity on level of 1.2950 on H4 chart with a first target of 1.3062 (Pivot point), and continue towards 1.3125 .

Trading Recommendations:

According to previous events, the price has still been trapped between 1.32 and 1.295.

Buy above 1.2950 with target at 1.306 then 1.313.
Below 1.32 look for further downside with a first target of 1.3150 then 1.3070.

Technical Levels:

R3: 1.3209
R2: 1.3164
R1: 1.3107
PP: 1.3062
S1: 1.3005
S2: 1.2960
S3: 1.2903

Observation (s):

Please check out the market volatility before investing, because the sight price may have already been reached and scenarios become invalidate.

Buyers are BIDding at a lower price.

Sellers are ASking for a high price.

Performed by Mourad El Keddani, Analytical expert
InstaForex Companies Group © 2007-2011

Overview:

The NZD/USD will be continued straight from 0.7370 (At H4 chart 00% of Fibonacci retracement levels, as well it's probably going to form a double bottom), therefore the Kiwi is shown signs of strenght following the break of the highest level of 0.737, so it will be a good sign to buy above the level of 00% of Fibonacci retracement levels on H4 chart (The double bottom) with a first target of 0.746 and futher to 0.757 (it will act as a strong resistance for that it is going to be a good place to take profit, it also should be noted that this level of taking profit will coincide at 23.6% of Fibonacci). However, in case of reversal takes place and the NZD/USD breaks through the support level of 0.7370 then the market will lead to futher decline to 0.7185, in order to indicating for a bearish market.

Note:

Strong Support: 0.7390.

At 0.7370 will be formed a double bottom.

Trading Recommendations:

According to previous events, the price will be trapped between 0.76 and 0.7450.

• Buy above 0.737 with a first target of 0.745, it might resume to 0.757.
• Below 0.73 look for further downside with 0.7245 and 0.7185 targets.

Performed by Mourad El Keddani, Analytical expert
InstaForex Companies Group © 2007-2011

MetaStock Pro FX (FOREX Analysis)

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• A wide choice of signals providers.
• $50/€50 minimum deposit.
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• Minimal lot 0.01.
• Full control of the account, including manual trading.
• Maximum lot 50, step 0.01.
• Trade at any time, even with the computer switched off.
• Spreads from 1 pip.
• Autotrade is based on laws of logic and precludes emotions.
• 44 currency pairs, gold, silver.

Accessibility, ease and favorable terms are the key factors of this service.

Trade with the best!

PED2D64HQNM4

Overview: According to the analysis of the yen on Forex market, the new sell signal is quite weak, the Bollinger bands show sideways movement and the price is in the Ichimoku Cloud. The formed sell signal is weak and confirmed, since the Chinkou Span fixated below the price graph and the price is inside the Ichimoku cloud. At the moment the first target is 77.42 – the first support level, however it is uncertain if the price can exit the Ichimoku Cloud and continue with the sell signal. If this level is passed the second target will be the second support level at 76.87. Downside movement remains while the price is below the Kijun-sen (77.85). The Chinkou Span is below the price graph, which confirms the sell signal and indicates bullish sentiment. The Bollinger bands show sideways movement, the lines not diverging and directed sideways, therefore it is recommended to wai for the beginning of the trend movement. The MACD is descending, which indicates current downside movement, however it is not recommended to enter the market until the current sell signal strengthens.

Trading recommendations: Currently it is recommended to wait until the price fixates below the Ichimoku Cloud and the Bollinger bands start diverging to the downside. In this case we can open sell positions with target at 77.. Stop Loss should be placed below 77.85. The MACD should signal downside movement.

In addition to technical image, one should take into account the fundamental data and the time of their release.

Chart annotation:
Ichimoku indicator:
Tenkan-sen — red line
Kijun-Sen — blue line
Senkou Span A — light brown stipple line
Senkou Span B — light purple stipple line
Chinkou Span — green line
Bollinger Bands indicator:
3 yellow lines
MACD indicator:
The red line and the histogram with white bars in the indicators window.

Performed by Stanislav Polyanskiy, Analytical expert

InstaForex Companies Group © 2007-2011