FOREX PRO WEEKLY March 23-27, 2015

[stelore]

Morning Sive,
Just to better understand and learn............
I was also looking at this Butterfly buy in the 4H timeframe.
Can you, please, explain the difference between the 2 and why did you choose the BF buy?

Thanks 1.000
Ciao
Stefano

 

[Sive Morten]

Morning Sive,
Just to better understand and learn............
I was also looking at this Butterfly buy in the 4H timeframe.
Can you, please, explain the difference between the 2 and why did you choose the BF buy?
View attachment 19072
Thanks 1.000
Ciao
Stefano

Hi Stefano,
mostly because initial thrust was fast and this increases chances on upside continuation. If this will not happen - then your scenario will become possible...

 

[coolieboya]

hello

Hello Sive ! I want to know if the bullish dynamic pressure on the 4 hour chart yesterday on Eur/usd could also be a bearish divergence as result of market hitting the major fib resistance and overbought on the daily chart? Thank you.

 

[Sive Morten]

Hello Sive ! I want to know if the bullish dynamic pressure on the 4 hour chart yesterday on Eur/usd could also be a bearish divergence as result of market hitting the major fib resistance and overbought on the daily chart? Thank you.

Sometimes pressure could look like divergence, but this is particularly big problem dealing with divergences. The point is pressure not necessary leads to immediate reversal after top has been taken out (as it was recently), but market very often could continue move higher. In this case if you take bet on divergence you will loose.