Sometimes, especially in such situations when you trade against main trend but it is not a rule as well, you will get only 2 levels and it is not only my opinion. Check some posts of trader called nicoacademia in this thread.
nicoacademia » Mon Mar 25, 2013 6:14 am wrote:not sure if this is counterproductive but the same pattern is seen on the dollar index. which is 67-orsomething% weighted to the EUR, then the JPY, then GBP...etc...etc...mjws00 wrote:Well boys here are some confusing pictures. EU has got me wondering what is up. On our 1H chart I see three nice pushes. We have a perfect setup for a nice stop hunt north and then drive it down. 50 pip run throws this right into the perfect sweet spot for a turn.
But they could easily shake it up a bit in here if we zoom out a little.
4H they have put in a bottom and started trapping late shorts... Nice pins and a pretty little W we could buy in the 1.2900 range.
Kinda feel like if I sell into this rally, even on a pretty M.... They will sweep it and cause me suffering.
Goofy muddled count with a gap that is technically not filled. They let a LOT of trapped bulls off the hook with the last pushes up. So it is really just those bears that sold the lows and the fakes around 1.2880 that are in pain. 1.2905 would be a beauty test down low.
Could be interesting. I can see a dozen moves they could make on this chart. CJ what am I missing? I see run north, kill weak bulls south, turn back north. But also potential to put in a longer TF bottom here.
Mike
edit:i guess we have to wait for the patterns W/M to form n then proceed from there. i guess its safer. EU1H does look like its starting to prong an M formation.
but what do i know.
for those 10.4 traders. EU is at a midpivot. and also at the 200 LWMA(O)(i modded to 200)
and here is the eurusd1h daily cycles. it's quite zoom zoom i guess cos of the news.
but if it lulls to 3. a reverse move is expected. (actually most just go 1-2. 1-2. 1-2. some even just 1 within one of the day's 3 sessions).
doesn't mean a 3 means it's going to hell. it just tilts the odds/favour/book probability that profit to push is in the opposite direction.
think of the foxes looking at the books.
that is level 2 dropping 