FOREX PRO Weekly May 30- June 03, 2011

[m0z1]

USD/CHF 4 hr chart DRPO?

Hello Sive

On USD/CHF 4 hr chart there is a clear DRPO... On the day time chart it has done AB-CD retracement FE 61.8 but not completed FE 100. So it could lead to some retracement which could accomplish DRPO on 4 hr chart.

I am attaching the charts for your reference. Could you please tell me your opinion on this.

Thanks
Mili

 

[Sive Morten]

Hello Sive

On USD/CHF 4 hr chart there is a clear DRPO... On the day time chart it has done AB-CD retracement FE 61.8 but not completed FE 100. So it could lead to some retracement which could accomplish DRPO on 4 hr chart.

I am attaching the charts for your reference. Could you please tell me your opinion on this.

Thanks
Mili

Hi Mili,
DRPO looks perfect. Second penetration is Bullish Engulfing also.
I don't remember precisely, but it seems that Georgeta has asked me about that.

 

[rashidin5178]

Daily Pivot

Hi Sive,

Based on your experience, how market react with daily pivot usually?

Thanks a lot.

Best Regards.

 

[Sive Morten]

Hi Sive,

Based on your experience, how market react with daily pivot usually?

Thanks a lot.

Best Regards.

Daily pivots... Well, many traders use them but I do not find them very useful for me, because I do not trade on tick and 5-min charts very often.
So prefer to use weekly pivots.
But I dare to suggest (at least theoretically) that daily pivots acts in the same manner but duirng smaller time. If this is the first touch they should act as support/resistance. Also they show market sentiment for particular day, I suppose. But again, I do not deal with them closely.

 

[rashidin5178]

Daily pivots... Well, many traders use them but I do not find them very useful for me, because I do not trade on tick and 5-min charts very often.
So prefer to use weekly pivots.
But I dare to suggest (at least theoretically) that daily pivots acts in the same manner but duirng smaller time. If this is the first touch they should act as support/resistance. Also they show market sentiment for particular day, I suppose. But again, I do not deal with them closely.

Thank you very much for your explaination.oh:

 

[Icarus]

Hello Sir,

I have two educational questions and attach two charts - one xauusd and one usdchf. On xauusd, is this possible butterfly sell pattern forming? And does one ordinarily buy to the upside target and then sell at that point? (if sell signs occur). Or is best to wait until upside target is reached and then watch for sell signs?

My second question is on usdchf - 4 hour chart shows a double repo buy if I am not mistaken, and we know that the target of this pattern is .618 retracement up. What I am unsure of is from which down thrust point to begin the calculation - there is downthrust from - 0.8588, 0.8717, as well as from the high at 0.8862. From which point do we begin the fib scale to show retracement? Thank you!

 

[Sive Morten]

Hello Sir,

I have two educational questions and attach two charts - one xauusd and one usdchf. On xauusd, is this possible butterfly sell pattern forming? And does one ordinarily buy to the upside target and then sell at that point? (if sell signs occur). Or is best to wait until upside target is reached and then watch for sell signs?

My second question is on usdchf - 4 hour chart shows a double repo buy if I am not mistaken, and we know that the target of this pattern is .618 retracement up. What I am unsure of is from which down thrust point to begin the calculation - there is downthrust from - 0.8588, 0.8717, as well as from the high at 0.8862. From which point do we begin the fib scale to show retracement? Thank you!

Hi Icarus,
you're right in both cases - yes, this is Butterfly and yes this is DRPO.
First about butterfly. In general this is reversal pattern, so if you intend to trade it purely, then you should wait its completion and then search "sell" signals to enter short.

DRPO. You're confusing DRPO with B&B. The 0.618 is target of B&B and not of DRPO. Minimum target of DRPO is 100% expansion from ABC based on DRPO tops. But probably on USD/CHF it could reach 0.382 resistance level.
Better when thrust stands below 3x3. So you may count it right after the penetration of 3x3 that has happened not far from top

 

[Icarus]

Thank you. This is very helpful. In general, can you tell me your outlook for usdchf?

 

[eric lew]

Hi Sive,

Don't you think GBP/USD has a DRPO on the 4hr chart also

 

[nicolebobbin]

Hi, I missed the Buy limit order at 1.4180 and 1.4280, what is next Buy limit order should come into play ?