October 11, 2012
- in Uncategorized by schooloftrade
Morning euro Checklist:
Heat Map
Review:
Euro is NOT
a moving market personality at 0.2% so we need to look for a little more entry PROOF
of the trigger before we decide to participate.
a moving market personality at 0.2% so we need to look for a little more entry PROOF
of the trigger before we decide to participate.
Overnight
Highs & Lows:
Highs & Lows:
The overnight
lows were tested and held as support and the overnight highs, along with the PHOD
have been successfully broken. This is
bullish.
lows were tested and held as support and the overnight highs, along with the PHOD
have been successfully broken. This is
bullish.
We compare
this to the Dollar-Index, the correlation is negative to the Dollar-Index for
the euro, and the Dollar-Index shows us a polar-opposite, being very bearish.
this to the Dollar-Index, the correlation is negative to the Dollar-Index for
the euro, and the Dollar-Index shows us a polar-opposite, being very bearish.
Inside orOutside Day?
We are
outside the range from Wednesday. This
tells us the market participants see NO value in the previous trading range and
are seeking a new range to trade within.
Remember what happens when these buyers FAIL and price slips back below
the PHOD. We want to sell short if we
get back below the PHOD.
outside the range from Wednesday. This
tells us the market participants see NO value in the previous trading range and
are seeking a new range to trade within.
Remember what happens when these buyers FAIL and price slips back below
the PHOD. We want to sell short if we
get back below the PHOD.
Find the price-structures: · Trigger-zone is resistance at 1.3000
and support at 1.2844.
and support at 1.2844.
· AB=CD Pattern we have two of
them. Resistance area at 1.3500 and support
area at 1.2705.
them. Resistance area at 1.3500 and support
area at 1.2705.
· Price-wedge is considered sideways,
just off the bullish price-channel. You
can ALMOST consider this to be a bullish price-wedge.
just off the bullish price-channel. You
can ALMOST consider this to be a bullish price-wedge.
· Price-channel is bullish and
considered MAJOR.
considered MAJOR.
· Zigzag pattern is not on this chart
· Sideways / Trading Ranges from 1.3080
down to 1.2813
down to 1.2813
· Double-top / Double-bottom are not on
this chart.
this chart.
Where
will a reversal be likely today?
will a reversal be likely today?
The price-wedge
tells us to look for the price-reversal at the highs and the lows. The highs and lows of the trading range will
also be ripe for a price-reversal.
tells us to look for the price-reversal at the highs and the lows. The highs and lows of the trading range will
also be ripe for a price-reversal.
What is
our trading plan for today?
our trading plan for today?
We are bullish above the PHOD with the Dollar-Index making
new lower-lows. We want to buy pullbacks
with wave-pattern-long as price makes new higher-highs.
new lower-lows. We want to buy pullbacks
with wave-pattern-long as price makes new higher-highs.
If we can get up to the highs of the price-wedge or the
trading range we will take profit on the buying trades, and look for the price-reversal
so we can sell the highs. If price moves
above the highs of the range, we look for the fake-out-breakout first and then
proceed to buy pullbacks to follow the strong buyers.
trading range we will take profit on the buying trades, and look for the price-reversal
so we can sell the highs. If price moves
above the highs of the range, we look for the fake-out-breakout first and then
proceed to buy pullbacks to follow the strong buyers.
If price falls we will sell below PHOD as the buyers have now
failed, looking for the Dollar-Index to fail to new lower-lows and reverse as
well. We will sell the PHOD with a profit-target
at the PLOD and the lows of the price-wedge and trading range.
failed, looking for the Dollar-Index to fail to new lower-lows and reverse as
well. We will sell the PHOD with a profit-target
at the PLOD and the lows of the price-wedge and trading range.
Remember the Dollar-Index correlation is very strong on the
euro.
euro.
