EUR/USD Daily Video, February 17, 2012

[Sive Morten]

Good morning,
although we've discussed support but I did not expect deep retracement. Nevertheless this retracement does not cancel bearish context on daily TF and it does not erase expectations of proceeding to 1.29 area:





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.

 

[mikejones]

First of all that is from an 8 hour chart, not a "daily" chart - I checked.

Second, you "could" have anticipated a "deep retracement", because if you knew Elliott wave, you'd see that it came after what strongly looks like a simple A B C correction that was preceeded by a 5 wave pattern (based on an 8 hour chart which is what you were actually referencing - not a "daily" chart"). And as we all know, a 5 wave pattern is generally followed by either a simple ABC OR a complex counter trend.

The way it looks, and based on solid Elliott wave analysis, the previous upward 5 wave trend should be resumed after this ABC, which will be solidly confirmed, IF the price moves above 1.333279. Otherwise, it will be a complex counter trend and best to wait until you can identify that another 5 wave has begun.

Good morning,
although we've discussed support but I did not expect deep retracement. Nevertheless this retracement does not cancel bearish context on daily TF and it does not erase expectations of proceeding to 1.29 area:





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.

 

[Sive Morten]

First of all that is from an 8 hour chart, not a "daily" chart - I checked.

Second, you "could" have anticipated a "deep retracement", because if you knew Elliott wave, you'd see that it came after what strongly looks like a simple A B C correction that was preceeded by a 5 wave pattern (based on an 8 hour chart which is what you were actually referencing - not a "daily" chart"). And as we all know, a 5 wave pattern is generally followed by either a simple ABC OR a complex counter trend.

The way it looks, and based on solid Elliott wave analysis, the previous upward 5 wave trend should be resumed after this ABC, which will be solidly confirmed, IF the price moves above 1.333279. Otherwise, it will be a complex counter trend and best to wait until you can identify that another 5 wave has begun.

Hi Mike,
thanks for add-on it makes sense.

 

[mikejones]

No problem Sive. A decent second set of eyes can help. Let's see how this works out.
I've found that Elliott Wave combined with a good understanding of candle signals and an
oscillator like stochastic will really up one's ability to accurately predict what SHOULD happen.

As always, in trading, the maxim "When in doubt...don't" is the best way to go.

Guys, we don't gamble. We analyze.

Cheers

Hi Mike,
thanks for add-on it makes sense.