October 25, 2012
- in Uncategorized by schooloftrade
Euro Currency Futures Morning Prep:
The dollar
index appears to have failed to the downside.
We see lower-lows early in the session.
We see higher-highs most recently.
We failed below the PLOD, and when we break back above this is a big
BULLISH clue.
We can see
overnight highs were tested, and they held as resistance. We can see the candlestick wicks at the highs
overnight and that is a clue for the buyers failing, which is bearish.
overnight highs were tested, and they held as resistance. We can see the candlestick wicks at the highs
overnight and that is a clue for the buyers failing, which is bearish.
We are
trading inside the range from Wednesday, which tells us this market personality
is range-bound market.
trading inside the range from Wednesday, which tells us this market personality
is range-bound market.
We have
major trigger-zone support at 1.2620 which will make for a profit-target for
short sellers, and an entry location for buyers.
major trigger-zone support at 1.2620 which will make for a profit-target for
short sellers, and an entry location for buyers.
Price-wedge is
sideways after we broke out of the recent major bull price-channel. We can see
2 distinct sideways-trading-ranges from the previous swing-high and swing-low on
the 89range chart.
sideways after we broke out of the recent major bull price-channel. We can see
2 distinct sideways-trading-ranges from the previous swing-high and swing-low on
the 89range chart.
As price
rises higher we look for the price-reversal at the PHOD and the resistance at
1.3090 which is right next to the price-wedge highs.
rises higher we look for the price-reversal at the PHOD and the resistance at
1.3090 which is right next to the price-wedge highs.
As price
falls lower we look for the price-reversal at the PLOD and the 1.2898 support which
is just above the lows of the price-wedge.
falls lower we look for the price-reversal at the PLOD and the 1.2898 support which
is just above the lows of the price-wedge.
If price
trades sideways we are sit-on-hands and will not see the price-reversal.
trades sideways we are sit-on-hands and will not see the price-reversal.
Our day
trading strategy for the euro is to use the Dollar-Index correlation to make
educated decisions. We want to buy-the-lows
at support and sell-the-high at resistance considering we are INSIDE DAY.
trading strategy for the euro is to use the Dollar-Index correlation to make
educated decisions. We want to buy-the-lows
at support and sell-the-high at resistance considering we are INSIDE DAY.
If price
moves above the PHOD we will first look for the fake-out-breakout and then look
to buy pullbacks using a wave-pattern-long above the PHOD, with a profit-target
at 1.3090.
moves above the PHOD we will first look for the fake-out-breakout and then look
to buy pullbacks using a wave-pattern-long above the PHOD, with a profit-target
at 1.3090.
If price
moves lower, below the PLOD we look for the same fake-out-breakout and then
with strong selling we use the wave-pattern-short to sell below PLOD and profit-target
at the 1.2898 support.
moves lower, below the PLOD we look for the same fake-out-breakout and then
with strong selling we use the wave-pattern-short to sell below PLOD and profit-target
at the 1.2898 support.
