EUR/USD Daily Video, March 09, 2011

[Sive Morten]

Good morning,
daily time frame gives a context for B&B "Buy" trade, that could start from 1.3850 or from 1.38 area.
Currently market stands at the first one, so it could start from there.
Be aware of possible Butterfly on hourly chart, so place stops in advance of it.




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.

 

[ronyboy]

signals

Hi Sive,
I liked how you covered B&B trade tactic. I wanted to ask what could be BUY signals on 1H time frame which we need to watch, if trade this B&B trade?

Thanks
Ronyboy

 

[Sive Morten]

Hi Sive,
I liked how you covered B&B trade tactic. I wanted to ask what could be BUY signals on 1H time frame which we need to watch, if trade this B&B trade?

Thanks
Ronyboy

Well, particular in this trade I've expected to see Double bottom or Butterfly "Buy", as I've said in video.
Double bottom, because market has hit extended 1.618 target and agreement so it has no reason to go down further.
Or 1.272 Butterfly Buy... But I intend to look at it only in terms of s/l placement - just to not be triggered by it.
So it looks like the first scenario is forming currently...

 

[samfx]

Butterfly on hourly chart

Hi Sive,

Do you think we got the Butterfly on the hourly chart that you have talked about in your video or we got the double bottom? Or the Butterfly is still forming?

Do you think the market will re-test the 161.8 level on the hourly time frame before it continue up higher?

Thank you

Sam

 

[Sive Morten]

Hi Sive,

Do you think we got the Butterfly on the hourly chart that you have talked about in your video or we got the double bottom? Or the Butterfly is still forming?

Do you think the market will re-test the 161.8 level on the hourly time frame before it continue up higher?

Thank you

Sam

The butterfly, that I've talked about has been cancelled by strong up candle. Market has already formed Double bottom. So, currently we can only wait - either it will hit target at 1.3960s or continue move down - in this case the next level to watch is 1.38.