March 30, 2012
- in Uncategorized by schooloftrade
Euro day trading strategy
We open the 89 range chart and we see the euro trading in
the same location as we did earlier this week; we see a price wedge price
structure inside day (above the PLOD and below PHOD) and when we see an inside price
wedge we know the market personality like the back of our hand.
the same location as we did earlier this week; we see a price wedge price
structure inside day (above the PLOD and below PHOD) and when we see an inside price
wedge we know the market personality like the back of our hand.
While we are inside the range from Thursday and inside the price
wedge structure we will assume that fake-out breakouts will occur at the highs
and lows so we will sell the highs and buy the lows of the price wedge. If price moves above 1.3391 and the buyers
show strength (size and speed on the tape) we then can pullbacks as price moves
higher. Remember, the dollar index correlation
is very strong on the euro we want the dollar index to drop to new lower-lows while
we see the euro move to new higher-highs above 1.3391 and then we buy pullbacks.
wedge structure we will assume that fake-out breakouts will occur at the highs
and lows so we will sell the highs and buy the lows of the price wedge. If price moves above 1.3391 and the buyers
show strength (size and speed on the tape) we then can pullbacks as price moves
higher. Remember, the dollar index correlation
is very strong on the euro we want the dollar index to drop to new lower-lows while
we see the euro move to new higher-highs above 1.3391 and then we buy pullbacks.
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| Euro day trading strategy |
Be on the lookout if the dollar index does
NOT move, and the euro does, that’s a big clue for the fake-out breakout so
looking for the failure at the highs or the lows if the dollar index fails to
move first.
NOT move, and the euro does, that’s a big clue for the fake-out breakout so
looking for the failure at the highs or the lows if the dollar index fails to
move first.
The 55 range chart shows us a bull price channel, the same price
wedge structure, and the support below and resistance overhead. Much more detail on the 55 range than on the
89 range. The most important thing we
see is the AB=CD Pattern which has perfect symmetry in time and price. If you project the time you will expect to
see a great selling opportunity early in April, around 3-4th of the month.
wedge structure, and the support below and resistance overhead. Much more detail on the 55 range than on the
89 range. The most important thing we
see is the AB=CD Pattern which has perfect symmetry in time and price. If you project the time you will expect to
see a great selling opportunity early in April, around 3-4th of the month.
The 21 range chart on the euro really defines
the day trading strategy for us today.
We see the price channel break advanced price-structures which tells us
to sell the 1.3380 area and this tells us to sell retracements as price moves
lower and the final target for the short will the trend line support at
1.3300. it also tells us that if we
break ABOVE the ‘D’ level of 1.3378 the sellers will have failed, the technical
pattern has failed, and if the dollar index moves lower to new lower-lows we
can then be confident to buy pullbacks above that ‘D’.
