EUR/USD Daily Video, April 05,2012

[Sive Morten]

Good morning,
MACD has confirmed bear trend on daily time frame so, downward move probably will continue. Still, market has hit some support and now turns to retracement. We can use it to enter short:





The technical portion of Sive's analysis owes a great deal to Joe DiNapoli's methods, and uses a number of Joe's proprietary indicators. Please note that Sive's analysis is his own view of the market and is not endorsed by Joe DiNapoli or any related companies.

 

[Chublet]

Hi Sive,

Thank you very much for your daily analysis, which helps me a lot every day.
I have an question. In a video, you sometime say, "It will be a deep retracement." or "It won't retrace too deep but a shallow retracement." Could you tell me an idea how you could tell that? Any particular pattern or market movement or indications?

Thanks,
Chublet

 

[Sive Morten]

Hi Sive,

Thank you very much for your daily analysis, which helps me a lot every day.
I have an question. In a video, you sometime say, "It will be a deep retracement." or "It won't retrace too deep but a shallow retracement." Could you tell me an idea how you could tell that? Any particular pattern or market movement or indications?

Thanks,
Chublet

Hi Chublet,
well, usually applying 3 tools can give you more or less clarification of that. First is strength of the thrust, second - overbought/oversold and third - strength of support or target level.

For instance, if you have strong thrust down, market has reached just 0.618 target of some AB=CD and has not reached oversold (as we have), then retracement in most cases will shallow - 0.382. IT could be deeper, if market has reached for example oversold + some support on higher time frame, or simulteniously AB=CD target.
In two words - pay attention to strength of support/resistance, oversold/overbought and strength of thrust.

 

[Chublet]

Hi Chublet,
well, usually applying 3 tools can give you more or less clarification of that. First is strength of the thrust, second - overbought/oversold and third - strength of support or target level.

For instance, if you have strong thrust down, market has reached just 0.618 target of some AB=CD and has not reached oversold (as we have), then retracement in most cases will shallow - 0.382. IT could be deeper, if market has reached for example oversold + some support on higher time frame, or simulteniously AB=CD target.
In two words - pay attention to strength of support/resistance, oversold/overbought and strength of thrust.

Hi Sive,

Thank you very much for your advice. I appreciate it.

Chublet