...the above being based on an analysis of one-hour charts. Dropping down to five-minute charts, it appears this strategy falls into place rather nicely with the use of the 90-minute price range envelope for fine tuning support/resistance levels and the 13- and 24-minute baselines for registering short-term trend reversals/price rejections. Examples of when you would purchase in-the-money binary option contracts using this tactic: For exact/precise entry points/levels, drop down to five-minute charts.
AUDJPY - Nice bullish run CADJPY was climbing so fast on Thursday and Friday that it offered no good entry/pullback opportunities. EURJPY - Nice bullish run GBPJPY - The bearish eight-hour trend is out of whack with the bullish six-day trend (which is losing momentum). GBPJPY - Nice bullish run NZDJPY - The bearish eight-hour trend is presently out of whack with the bullish six-day trend. USDCHF - Nice bullish run USDJPY - Nice bullish run AUDUSD - Has the six-day slope gone neutral? (The eight-hour trend is currently bearish!) NZDUSD - This pair has gone nowhere in the last two-and-a-half months almost. However, as of Friday, the eight-hour and six-day trends both look bearish. EURAUD is in eight-hour consolidation mode, but the pair is overall bearish. EURGBP's bullish eight-hour trend is presently out of whack with its bearish six-day trend. EURUSD - the bullish eight-hour trend just now realigned with the bearish six-day trend on Friday. USDCAD - Nice bearish run
As now configured, my five-minute chart setup would have offered at least nine opportunities over Thursday and Friday to enter a long position with respect to this "fast moving" asset.
Though EURGBP is overall bearish, the eight-hour trend is bullish, and price appears to have just been rejected at the 12-day temporal support level, giving me adequate reason to conclude that the pair just might hit my take-profit target of 0.8594 if it should opt to climb from 0.8579—hooking the two-hour baseline to the north as it does so. Moreover, the rate is in the lower half of the 36-day price range, with the 24-hour baseline having possibly just switched from a bearish to a bullish sentiment. So, if the two-day baseline does the same, who knows how high EURGBP might eventually climb before finally resuming is prolonged descent?
This EURAUD position, which was a risky trade that went against the prevailing trend, was made based purely on structure, and yet, it appears it just might pay out. On the other hand, my EURGBP position, which was made with the prevailing trend, looks like it might try to stop me out. UPDATE #1: Rather than wait for the pair to stop me out, I exited my EURGBP position for a loss (most of which was covered by EURAUD) and I'll now observe to see if the Euro - Cable reaches what I deem to be a significant support level at 0.8569. If it is rejected there, I might try buying the pair again. UPDATE #2: Hmmm? EURGBP never reached my stop loss, and the 13-minute baseline is once again bullish. If the 24-minute baseline also turns bullish, I'm going to have to buy this pair again with the exact same stop loss and take-profit target as before.
For me, EURGBP is not a candidate for a short position. That said, the next level of support as I see it is down around 0.8553. (I'm finding greater favor with AUDUSD...) (...and CADJPY.)