zentauro67 » Tue Apr 15, 2014 2:00 pm wrote:EURUSD is dancing over the 240, so, it´s very difficult to say anything. It could go back to ATR+2 o +3 to fill the gap, or complete the reversal visiting ATR -2 or -3. Price seems being trapped in a narrow box as the decision is taken.
In these cases we could try the breakout using pendings above and below the box. I prefer the TL broken as a better signal but the problem with penging orders and diagonal lines is that you never know very well where the TL breakout will happen. AnotherBrian coded an utility that allowed to use pendings in diagonal lines, but it is also interesting the millipede breakout lines that someone posted in other thread. It makes very easy to put the pendings above or below the highs and lows that are marking the congestion zone.
Zentauro, Not sure I understand all those ribbons, etc.. but thank you for your input. Looks interesting.
My trading is based on both short term and longer term Price Points of Interest (MST's) which are based on price action rules and principles which allows me to plan ahead. My studies include GANN Theory (Octaves), Fibonacci Principles, Dynamic Linear Regression and trade desk experience.
The Gap at sunday open will be filled. At the same time (planning ahead), there are PPOI (Price Points Of Interest) lower, which I have already posted and commented on. Price broke the TL exactly as I had discussed, doing so at the 50% fib retracement level which was also the same price as Level 4 Octave support. Price crossed the TL at precisely the same level as a previous support range prior to it's 112 pip lift, where then I announced, in advance, my selling of the EURUSD (and gave the reasons for the sell position) where I then subsequently closed 2 positions for +51 and +88 pips.
I am expecting the market to drop later to take out the lower price points of 1.3735/50 area. To take out the lower PPOI, price will need to clear the TL at 1.3785/90 area. When it does, expect a fast drop to 1.3765, then a bounce back up to the TL to confirm the new downward momentum / trend direction. I am currently long EURUSD for about +14 pips. I will have SS under the TL waiting. If price breaks the key TL, I will then make entry for the sell with the lower targets being activated and in play.
When price moves up to close the gap, this will represent a 61.8% to 78.6% retracement, where I will, again, make new sell position, closing out my long.
#1_-_2014-04-15_1440.png
If Price moves down to test the TL, I will close my long on a protective stop for +3.
You can see the move up on the TL crossover using STO7 on H4. Price did the expected and normal action.
It crossed the TL, then made the move to confirm the new momentum direction by retesting the same TL. This is normal price action. The fact that the STO7 was in the Lower Zone (<10) when price dropped shows it is positive divergence, and if short.. look to close the position. If looking for a long position, the drop is the place to enter the new long position.
The purpose of this posting is to demonstrate how STo7 / 10.7 can be used along with TL (and other utilities) to plan the trades, and to plan ahead. STO7 gave a perfect alert to the crossover of the DT line. Once the swing low bar was in place, the new longer term Up TL line is added to give support to upward price action and potential targets.
The current price action is simply a retracement within a longer term down trend. I expect it to resume in short order.
Cheers
Cheers |
