blue circles/ellipses: price reaction at support/ resistance (S/R)
green circles/ellipses: bull/ bear flags/ consolidations
red circles/ellipses: timing setup (close at S/R and penetration with new candle)
red arrows: purely stop fishing without confirmation of S/R breach
black thick circles: see chart comments
purple line-monthly S&R/ orange line-weekly S&R/ pink line-daily S&R/ red line-4-hour S&R/ blue line-1-hour S&R/ green line-5 min S&R/ brown line-necklines and gaps
black dotted line-200 SMA, purple line-20 SMA, red line-10 SMA
EUR/USD had a quite session today and so far the Euro traded in the hourly consolidation range around the low of November 8th.
The European session started with a shakeout/ stop fishing at 6 a.m. GMT. This false breakout led to a reversal of the EUR/USD. Market moved down to the 1.27 level and in the following market price action was capped in the range of this impulsive move during today's trading session.
At 1.10 p.m., the EUR/USD reversed at the 1.2735 level because of the Fibonacci cluster due to the two 100 % fib extensions from the previous swings up, the daily pivot point and the recent high at 1.2730 on the 5 min chart.
We had many continuation patterns (green circles-Pennants,Flags,Ledges), which could have guided today's trading decisions. Furthermore, the red circles show where the Breakout Timing strategy could have been applied and the orange arrows show where consolidation price zones led a market reaction. The Fibonacci levels also helped to find turning points.
Read the pages below: Chart pattern explanation, Chart patterns explained, Chart pattern analysis and Candlestick Chart patterns to get more information about the underlying Chart and Trading patterns/Signals/Strategies