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EUR/USD Daily Video, May 02, 2012

Discussion in 'Sive Morten- Currencies and Gold Video Analysis' started by Sive Morten, May 2, 2012.

  1. Sive Morten

    Sive Morten Special Consultant to the FPA

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    Good morning,
    I do not want to upset you, but today there is also few to comment - just look at the chart.
    Still, On hourly chart there are probably signs of weakness. Very probable that market is awaiting for some solid event to move price from a dead point. And NFP could easily become such kind of event:




    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.
     
    #1 Sive Morten, May 2, 2012
    Lasted edited by : Aug 15, 2015
  2. Chublet

    Chublet Private

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    Hi Sive,

    Thank you very much for your great daily analysis. I have started reading a book of Dinapoli Level again. I read it before maybe 4 years ago but I did not understand at all. Since I have read your Forex Military School, it has started making sense slowly.

    Now I think I have found one of the patterns on the book. I have attached the chart. I think this is "Railroad Track" on 4 hour chart and retraced @ fib .382 level. Also this is Weekly Support 1 area as well.
    Is it a buy signal although MACD on 4 hour chart is bearish but daily and weekly chart still hold bullish. Is there any other confirmation I should look at before placing a buy order?

    I would appreciate if you could give me your advice.

    Thank you.


    Chublet

    02.05.12 EUR 4H.
     
  3. Sive Morten

    Sive Morten Special Consultant to the FPA

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    Hi Chublet,
    this is not quite RRT. It looks like RRT, but the nature of current pattern is different. Simply speaking RRT appears when there is no price action to the left at the same price for a long time - at least 120-150 periods, but here we see that there was a price action just couple days ago.
    RRT also known as Rejection of price pattern. So, market by its momentum occasionally reaches some extreme price level, but then price returns right back. That is RRT.
    You've correctly identified the shape, but this pattern is not an RRT.

    Speaking about trend, recall that RRT is directional pattern and by DiNapoli Direction overrules trend. It means that whatever trend is, you may igore it and trade with Directional pattern.
     
  4. Chublet

    Chublet Private

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    Hi Sive,

    Thank you very much for your advice. Your advice is really helpful and I will write down your comment in the book as additional information but I have another question.

    You said that "RRT appears when there is no price action to the left at the same price for a long time - at least 120-150 periods, but here we see that there was a price action just couple days ago. " The book does not mention anything what you said. On an example chart in the book, it just says "no congestion" on the left side of the chart. Is this what you mean?? Also what exactly "price action" mean? A candlestick/pattern? or price reaction @ support/resistance/fibonacci level? I know that you talk about candlesticks in Chapter 9 of Forex Military School. Did I miss anything in the school?

    Chublet
     
  5. Sive Morten

    Sive Morten Special Consultant to the FPA

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    Price action just assumes the price of the same level. Recall example that DiNapoli shows in his book about houses in Santa Barbara. If you will place house for sell at low price - it will be sold at a blink of an eye and price returns right back to common level. Imagine how it will be look on chart - that is RRT.
    DiNapoli does not specify this in the book, but I also read a lot on his private forum. So, there is such explanation about RRT. Other words RRT needs some unnatural price level - either those that absolutely new (high/low) or those that was much time ago.
     
  6. Chublet

    Chublet Private

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    Hi Sive,

    I see. Thank you very much for a good explanation. I now understand.
    Once again, thank you very much for sharing your valuable knowledge with us to help us.

    I am very lucky to have found this website and be able to learn forex properly from you.

    Thank you.:)

    Chublet
     

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