20091114 - EURPLN, CHFPLN

The EURPLN has broken daily low of 4.15:



The CHFPLN is below daily support of 2.75:



Both currencies have generated sell signals during this week. However, considering a number of false signals lately, those signals can also be misleading.

We should remember the primary downtrend and use those rallies are only to liquidate our long positions (if we still have any).

Note from 2009/11/14:
Lately I have received a mail with alternative interpretation and I believe it is worthwhile to visualize it here:



Of course, we can use trendlines' breakthroughs to generate signals; however in my opinion this technique is too subjective.
Let's take a look how many trendlines (and false breakthroughs) can be drawn:



I would rather rely on Price Action model, which generally leaves less space for interpretation (nevertheless, marking highs/lows can be tricky).
Those are my methods, but if something works good for you then use it. Eventually, every trader has to develop its own strategy.