This one is a little different; a pattern we see happen a lot.
Its kind of like the bottom of the bucket, for now we'll just call it a "spike base". It happens when price makes a huge spike, when the spike gets taken out in the opposite direction, the bottom of the original consolidation area is used as a fade, in this case, its 1.1780.
Its kind of like the bottom of the bucket, for now we'll just call it a "spike base". It happens when price makes a huge spike, when the spike gets taken out in the opposite direction, the bottom of the original consolidation area is used as a fade, in this case, its 1.1780.
I talked about briefly in a couple examples for the last video, on EUR.
We've also got the .764 retracement of this last move coming in here around the same figure, along with double zeros 20 pips higher, and a good history in general with this area. Worth a shot.
Update 1/14/10: Canceled due to time lapse
Update 1/14/10: Canceled due to time lapse
6 comments
Glad you back to blogging. Your educational stuff helped me tremendously. I had just come across the material after you had had left. Anyway, hope to learn and keep trading your style. Makes so much sense. Thank you.
Kashter
Hi,
This is my first view of your blog. I have been trading for 5 years & found your description is really a "no brainer" stress free & enjoyable.
Keep it up & want to stay in this blog.
Thanks
Hi Steve! I'm new to your blog but am very interested. As far as I understood we are primarily interested in S/R zones. Why don't you want to go short at 1.1680, which is a "S/R line" on the 4H chart and almost coincides with the 61.8 Fib level?
Hi Steve! I'm new to your blog but very interested. Why don't you want to go short at 1.1680, which is a "S/R line" on the 4H chart and almost coincides with the 61.8 Fib?
Hey Steve,
Vivid reader of your blog. I use 15 min for S & R. When price reaches S, I am curious to see if you wait for a pierce before you enter a trade. Lets say EURUSD level is 1.3160. Price coming down to that level. Would you wait for a pierce to go long or just enter limit at 1.3160. Do you use any filters when not to go long and when to go long & to distinguish pierce of a level versus level broiken.
Thank you for your help.
Sam
Hi, this is a very good blog. Like your style of trading.
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