FOREX PRO WEEKLY June 22-26, 2015

[Sive Morten]

Hi Ochills,
I think that it is not neccesary to recalculate OB level. In fact, we use 85-100% of OB because this is not predefined number, this is mostly some range. Most recent DOSC tops and bottoms could be slightly lower or higher than the lowest and highest ones, but if OB number stands in 85-100% range of your calculation, it will mean that market overbought or oversold.
From time to time you can follow the market and exclude some "too far at the back" peaks and bottoms, because volatility on the market also is changing and it could happen that market will not reach at all the levels that were somewhere in the past. OB/OS level could become as narrower as wider. Use 150-180 bars of history, that should be enough for calculation.

Good Morning Commander in pips. First thanks Immensely for Ur priceless gift and your great consistent.
pls Commander last week GBP/USD reaches overbought on daily time frame and my DOSC does not move above the previous high, despite the fact that DOSC touch the OB level. In forex Military school U said one should recalculate level of OB/OS if DOSC create a new over bought level, but DOSC does not move above the previous level I use for the calculation of recent OB reached. So do I recalculate and if yes, Current oOB level cannot be use because is not higher than the previous.
thanks as usual

 

[ochills]

Hi Ochills,
I think that it is not neccesary to recalculate OB level. In fact, we use 85-100% of OB because this is not predefined number, this is mostly some range. Most recent DOSC tops and bottoms could be slightly lower or higher than the lowest and highest ones, but if OB number stands in 85-100% range of your calculation, it will mean that market overbought or oversold.
From time to time you can follow the market and exclude some "too far at the back" peaks and bottoms, because volatility on the market also is changing and it could happen that market will not reach at all the levels that were somewhere in the past. OB/OS level could become as narrower as wider. Use 150-180 bars of history, that should be enough for calculation.

Thanks Commander, your prompt response is deeply appreciated. thanks

 

[kureja]

Hi sir Sive,
Q.1 : If the market close on daily charts between 1.5660-1.5680, the DOSC value will be oversold -160 value and we can see that there is forming an inverted hammer on daily close at 1.5660-1.5680 area and this (1.5660-1.5680) area is quite near to fibonacci support level 38.2.will this be a strong support area for entering a long position targeting 1.60? or we should wait for the 1.5645 for entering long position..?

thanks,

 

[Sive Morten]

Hi sir Sive,
Q.1 : If the market close on daily charts between 1.5660-1.5680, the DOSC value will be oversold -160 value and we can see that there is forming an inverted hammer on daily close at 1.5660-1.5680 area and this (1.5660-1.5680) area is quite near to fibonacci support level 38.2.will this be a strong support area for entering a long position targeting 1.60? or we should wait for the 1.5645 for entering long position..?

thanks,

Market will not be oversold at 1.5645 area. Since it is retracing after overbought been hit, retracement should be deeper, and 3/8 is not really deep retracement. Besides, we have AB=CD in progress.
If market will not complete it and turn up earlier, then it will be a B&B pattern. But this does not mean that market will not reach 1.60. It probably will do this by some other pattern...

 

[kureja]

Hi Sir Sive,
Thanks for your kind reply.
i need to know that is our target for 1.60 removed or still intact? because in this week no gbp update you have posted. i mean if the uptrend has finished due to euro debt issue or some other reason, should we exit from our long positions on gbpusd. i mean to ask that what the current sentiment is. because today gbpusd has opened with gap and went low for 1.5664 close to 38.2 fib support then came up. but i am afraid due to greek debt issue although gbp has fundamental news in this week.