We've hit support just like we thought. No reason yet to panic and reverse. Remember back to a time when you have been on the wrong side and remember the huge effort and time that it took to reverse the market after the initial thrust against you. Bottom line, it might reverse, but right now it just looks like short covering from people with minor profits who are trying to nail down a small win. We want larger victories--
Still short here--we got our hands spanked just a bit yesterday after 70 pips gain, but I still believe that weekly charts are weakening.
Seeing some interesting action on the hourly Euro FXchart, which may indicate intraday topping. It is not present on the 240 chart though, so this would be a short term short if taken. The 240 rolling over would be better for a longer gain and as of now, it's not ready to do so. That was our issue yesterday of course, as I had mentioned in my post that the 240 was not where it would help us a great deal intraday anyway.
Doing some review of old Eurofx daily charts and it looks like this kind of non directional, listless market generally only lasts a maximum of 10 to 14 days. We are at about 7 days now. I look for a breakout soon.
15 minute Euro FX chart has downside reversal signal 60 minute does not 240 does not daily does not Weekly chart weakening My view is that 15 min chart signals are good for 30 pips 60 minutes signals are good for 50 pips 240 is good for 120 pips Daily is good for 400 pips Weekly is good for up to 1000 pips. Summary. the 15 minute short signal can be traded for at least 30 pips from 1.2880 to 1.2850.
Hourly is attempting a bearish Histogram divergence, but not completed yet, so for the moment only the 15 minute signal is there.
This one worked like clockwork. The next chart to be trade would then be the hourly. Yes, the 15 minute can continue on and we would miss profits, but my research shows that for the intraday stuff you are best to have a profit target and get out at that level depending on what chart you are trading. Summary here is that shorting right now is against the hourly and 240 trend and so those need to roll over a bit to confirm further downside and we can get back in then.
Experience tells me that the 15 minute sell off is overdone for a bit and we'll bounce. The 60 and 240 need time to consolidate a bit before they would roll over. If the 15 minute just continues on , that will be fine with me as my positonal short trades still have their stop at 1.3025 and I could use the downside. The 240 should take a bit of time before the proper signal is created. Indeed a short signal may never come on the 240. This is why the profit on the 15 needs to be taken at 30 pips.