EUR/USD Daily Video, December 20, 2010

[Sive Morten]

Good morning,
Current situation on EUR gives us very nice possibility to trade on the short side. But analysis has a lot of details, so, watch carefully:






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.

 

[King Midas]

Sive:

Thanks for this analysis and guidance. I really appreciate it.

 

[Edward Rodriguez]

King Edward

Sive,
Last week I stuck with your analysis and earned over 300 pips. A very profitable week on the EURO. I believe this week is looking even better. I am only trading 1 position at a time and do not open a second trade unless the first one closes. I trade conservatively.
Thanks for the insight,
King Edward

 

[erich]

butterfly addon

thanks Sive for the precise analysis!

- as you illustrated, the most critical number in the pattern is the
1.27 XA leg -> resulted about at 1,3090 or
1.618 XA leg -> resulted at 1,2980

you said, if CD is faster than AB, then the price tendency is greater than 1.27 of XA leg and further characteristics confirm this expansion level at 1,2960 - 1,2980:

- AB expansion should be between 0.382 and 0.886; in that case it was over 0.886 and nearly like the XA expansion;
- the butterfly must include the AB=CD pattern and frequently, the CD part is 1.27 or 1.618 of the AB leg -> resulted to about 1,2960 or 1,2850;
- the XA calculation is complemented at an extreme BC projection of 2.00, 2.24 or 2.618 -> this leads to 1,30, 1,2960 or 1,2890

would you agree or do you use only the expansion of the XA leg?
all facts together should form the butterfly and at the end of CD leg there is the entry for the long signal;
if we don't find any signal at the level 1,2960, and it's probably in this week market, the butterfly fails and the market should rapidly go down;
would you agree too?

a second question:
you mentioned a nice W&R by the way in the video:
could you explain the W&R pattern from friday at 1,3360?
Jo DiNapoli is speaking from a market which is in consolidation above or under a D-level; on friday there was no consolidation;
there was a strong upmove against 1,3360; further he explained, in a short time frame the stops were cleared out like domino stones
and a price thrust is resulting; this was the upmoving bar at the height at this day and the price raised down in the next bar;
could you give us your insight of this phenomenon please?


thanks Sive!
I wish you merry christmas and nice relaxing holiday! we all hope to hear from you as soon as possible in 2011!
Erich

 

[barry101]

Glossary

Hi Sive,
I have referred several people to your excellent posts, and then I need to explain to them concepts such as "wash & rinse", "double repo", "bread & butter pattern" and other key concepts you regularly use.

I find the Glossary of your section too basic to explain those more advanced concepts. It would be a lot easier for newbies to follow your posts if you would add a video there explaining them in one easily accessible place.

Thanks for considering this.