EUR/USD Daily Video, November 16, 2011

[Sive Morten]

Good morning,
Market is approaching to support level and target of AB=CD pattern, so some retracement is possible. IF you're bearish - you may try to use it for short entry.
IF you're scalper - there will be nice possibility to make scalp buy trade. But - wait for clear patterns:




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.

 

[erich]

thanks

hi Sive, thank you for your analysis!

two questions:

1. how should we act in such a situation like this one: price has hit daily-Pivot and bounced off, but 1-hourly MACD has turned to bullish?
wait until 1-h MACD goes bearish for short or wait for a retracement until 4-h MACD goes also bullish as a long signal?

2. you mentioned 1,3242 as 100% expansion from a daily ABC, but what's up with the two bigger ABC in the picture?
the first big ABC has fullfilled 100% expansion today;

thanks, Erich

 

[Sive Morten]

hi Sive, thank you for your analysis!

two questions:

1. how should we act in such a situation like this one: price has hit daily-Pivot and bounced off, but 1-hourly MACD has turned to bullish?
wait until 1-h MACD goes bearish for short or wait for a retracement until 4-h MACD goes also bullish as a long signal?

2. you mentioned 1,3242 as 100% expansion from a daily ABC, but what's up with the two bigger ABC in the picture?
the first big ABC has fullfilled 100% expansion today;

thanks, Erich

Hi Erich,
since recent AB=CD has completed - that's why we've said that some retracement is possible. We've discussed this AB-CD on 4-hour time frame.

Now about first question. Initially, you have to specify what time frame do you use as a context. If this is daily, then you have bearish context and have no reason to enter long, since trend is bearish. The fact that hourly/4hour trend is bullish while daily holds bearish tells that you can expect a bit deeper retracement, but this is not the reason to buy.

If you use hourly trend as context, then you can drop your time frame to 5-15 min chart and search for possibility to enter Long and do not take into consideration daily trend.

BTW, soon multiple time frame application Chapter will be released in our FM School. Probably it will help you.

weekly pivot point mostly confirms bearish sentiment, since we use it at daily time frame.

Hope that helps. If you need to clarify something a bit further - do not hesitate to ask. If something is still unclear.

 

[adman]

Where is Sive?

Where are you, Sive, on Nov. 17 and 18? Your fans are awaiting your analysis.