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Chart of the Day 2.5.13




Chart Analysis:

Despite the European Sovereign Debt Crisis the Euro has experienced a 12% rally against the U.S. Dollar since late September 2012.  However, the sentiment among some investors appears to be bleak, predicting that the Euro is now overbought and is likely headed for a decline. 

Today’s NinjaTrader Chart of the Day, powered by the free end of day Kinetick Data feed, touts the multi series charting capabilities, coupled with the industry leading technical analysis features of the award winning NinjaTrader Platform.  A Daily candlestick style chart overlays a weekly (blue/yellow) and monthly (dark green/red) box style charts of the $EURUSD currency pairing allowing technical traders to hone in on the intricate price action within a larger time frame analysis.  The Daily Bollinger Triple State Bands are plotted at standard deviation levels above and below a moving average, which provide an excellent measure of volatility, widening during volatile markets and contracting during calmer periods.   The Ruler Drawing tool (blue), which is one of the many drawing tools equipped with every install of NinjaTrader, allows technical traders to efficiently measure moves within a market.  Additionally, the Weekly Volume Zones, plotted on the left portion of the chart panel, plot a horizontal histogram of the cumulative total of all volume bars for the periods which the price fell within the vertical rage of the histogram bar.  Lastly, the Monthly Williams %R momentum indicator is plotted on an additional chart pane, which is designed to identify overbought and oversold areas of a market.  Due to political qualms and weak growth expected, analysts at Barclays Capital predict the Euro to drop to 1.28 a year from now.  Ensure that you are on the right side of the trade and Trade Like a Pro utilizing all of the free industry leading features of NinjaTrader!