FOREX PRO Weekly February 18-22, 2013

[Sive Morten]

Hello Mr Sive,i would like to draw your attention to a downward channel on the 4 hour Euro chart.At the time of this writing the Eur is at 1.3386 i.e it has broken the bearish pennant which you pointed out today,so the upper end of the channel line coincides with WK R1 which i think should be where we should search for short entry.

Hi Tun13,
nice observation, buddy. That's my thought either.

 

[squidge42]

Hi Sive. would you mind having a look at GBP/USD please, I think we may have stretch on the daily

 

[Sive Morten]

Hi Sive. would you mind having a look at GBP/USD please, I think we may have stretch on the daily

View attachment 8410

Hi Squidge, personally I like Stretch on weekly - oversold at 5/8 major Fib support, but this is stretch at daily as well.
However, since this is weekly pattern, it could lead market even to daily overbought, so if stretch will start to work - it could lead to some greater move on daily.

 

[BeeKay8]

Hey Sive,

I know this is unrelated but I am a bit confused with GBP/USD. I am confused as to where the reaction and focus points are for monthly chart for GBP/USD.

I would really appreciate your assistance.

Best,
Brandon

 

[Sive Morten]

Hey Sive,

I know this is unrelated but I am a bit confused with GBP/USD. I am confused as to where the reaction and focus points are for monthly chart for GBP/USD.

I would really appreciate your assistance.

Best,
Brandon

Hi Brandon,
this is educational question, so it is related absolutely. We have on monthly chart multiple swings that are acceptable for trading of different scale. Besides, you do not tell whether downside or upside.
So, you have two Focuses for downward swings. First one is a focus for whole move down and it's a major low, while second stands for most recent swing down, and there is no Confluence area, since they are based on different focus numbers.
Theoretically you have another focus low between them, but currently all major levels have been erased, so I do not mark it.

 

[JohnnyInamoto]

Hi Johnny,
this is a special directional pattern that was invented by Joe DiNapoli and demands application of his MACD Predictor indicator. In general, this is a failure of trend shifting by MACD, that forces traders to take this uncofirmed trend shifting, but later, when previous trend direction holds - these traders who have taken unconfirmed trend shifting become trapped in wrong direction. Usually stop grabber leads market in opposite direction to the stops of these traders. That's why it calls like that.
Try to "search" my thread - you will find a lot on this topic.

Thanks Sive. I really appreciate the advice

 

[Sive Morten]

Guys,
market just has shown a W&R of previous lows - and take a look at daily time frame - if it will close somewhere near, we can get our pattern - morning star right on Monday.

 

[Ghandi1]

Guys,
market just has shown a W&R of previous lows - and take a look at daily time frame - if it will close somewhere near, we can get our pattern - morning star right on Monday.

Yes, I took some long at 1.316, it can be worth a risk of 50/60 pips in SL.
I hope that next 4Hour candle (15:00CET) close above 1.3209 to confirm the hammer

 

[MidnightRun]

Guys,
market just has shown a W&R of previous lows - and take a look at daily time frame - if it will close somewhere near, we can get our pattern - morning star right on Monday.

Morning star Monday, which implies reversal north, right?
Thanks

 

[Joshnix]

If you look at typical MACDP crosses on time frames across the board most will retest MACDP from the other side on the immediate bar. You can try and scalp that upward retrace, like on weekly. Or you can watch and take a small risk position when the retrace happens. If EUR closes below weekly MACDP I would expect some retrace up to 1.3340 - 1.3500 area.