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EurGbp. 110209 For “Jeff B.”. Note:. A Daily EurGbp chart showing a fork placed in an “up position”. The problem with placing forks to early is that price will blow through the bottom of them. Two events make me leery about placing a fork at this time no matter how nice it looks.
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EurGbp 110209 For “Jeff B.”
Note: • A Daily EurGbp chart showing a fork placed in an “up position”. The problem with placing forks to early is that price will blow through the bottom of them. • Two events make me leery about placing a fork at this time no matter how nice it looks. • Event 1. Price is a hitting a significant resistance level for me. (need to place a channel line setup.) • Event two. The purple line denotes a change in behavior to the long move. As long as we now continue to make swing lows then I will find myself short.
Note: • Now seeing that we have a short bias based on our Controlling swing high of this chart I have boxed price into a channel. I will now wait for price to show its direction based on the lines. • I see price retesting the significant resistance level and would suspect and that is “suspect” a drop at the red arrow. Should price move out of the channel or above the resistance level I would reassess. • My target would be the opposite channel line. • The following chart shows the channel and a down trending fork. • Should price rise up and take the level of the red arrow out I would again be bias long. • I have placed a rather large down trending fork on as price is still caught in my down trending channel. The intersection of the channel and the median line would be a great target.
240 Chart • The 240 chart is as follows. • The yellow line is where I figure the market had a change of heart and now we are in a down trend. The white lines are significant areas of S/R for this trader and I like to trade between them till I hit an over all target.. • The purple line shows the new swing low taking out the previous low signifying a change in market structure or personality. (Grouping of price structure is mandatory.) • While I have down fork which is contradictory to the daily fork patterns are within patterns. At present price is testing an upper median line at a significant resistance level. This chart keeps me from hanging onto any long bias I might have developed from the daily chart like testing a higher resistance level. I would suspect a short move at the intersection of resistance and the upper median line. • Should price move higher and into a reaction line I would look for a solid test of the resistance line although price says lower. .9239 is the level of demarcation for the long bias on this chart.
Note: • Just to show I placed a new yellow up fork as an area to move long. While price certainly might move long my preference is short as there has not been a change in market structure which makes the trade long not impossible but not highly probable for this trader. • My short bias will stay short till I get signals to tell me otherwise.
