FOREX PRO WEEKLY October 21-25, 2013

[Sive Morten]

Hi Master Sive.
Please i want you to clear something to me on B&B pattern. must the crossing 3 by 3 MA to the opposite side of thrust always 38.2 fib retracement or could it be less, say like 23.6 fib retracement. Thanks

Hi Seedof,
No, it can't be less than 0.382. It could be even 50%. The rule suggest "reaching of important fib level within 3 periods after crossing 3x3". "Important" level usually at least 0.382 from thrust of B&B. It could be some specific situations, when it is ont very easy to estimate this "important" level definitely, but in this case experience should help. B&B is a bit flexible pattern in terms of identification of suitable thrust, its shape, choosing "important" level etc.

 

[seedof]

Hi Seedof,
No, it can't be less than 0.382. It could be even 50%. The rule suggest "reaching of important fib level within 3 periods after crossing 3x3". "Important" level usually at least 0.382 from thrust of B&B. It could be some specific situations, when it is ont very easy to estimate this "important" level definitely, but in this case experience should help. B&B is a bit flexible pattern in terms of identification of suitable thrust, its shape, choosing "important" level etc.

Thanks very much Master Sive. Now its clear to me how to identify Bread and Butter to Double Repo

 

[Lolly Tripathy]

4hr pin bar may be..let the candle close..
its early to say but looks aike

 

[minimax]

I decided for long, 5th wave on H4 as ending diagonal

Good trading!



ps: today USA GDP !!

 

[newWalter]

let's see

@ minimax

within 2 hours we'll see if you're right

 

[frankiebgood]

nice one Sive,

You caught the NZDUSD on the end of the 5th wave, going down nicely.

 

[minimax]

I hate him when he is fast.......But he is KILLING me when he is slow!!!

 

[Lolly Tripathy]

Hi Sive sir, As you said about daily bearish pattern..
if market will close today candle at 1.3773 then it shud be a daily bearish engulfing pattern
and its all about 40-50 pips form recent price..yesterday daily candle length is only 60pips..
so can you approve this as a daily reversal pattern...????
Thanks and Regards

 

[minimax]

Hello

I decided for short,think that ED could be finished or at least 1ED or 3ED,so retrace at least..

Good trading!

 

[Sive Morten]

Hi Sive sir, As you said about daily bearish pattern..
if market will close today candle at 1.3773 then it shud be a daily bearish engulfing pattern
and its all about 40-50 pips form recent price..yesterday daily candle length is only 60pips..
so can you approve this as a daily reversal pattern...????
Thanks and Regards

Hi Lolly,
well, any big thing usually starts with something small, and most cases you can link chain right from small patterns on hourly charts to long-term reversal on monthly. But I prefer something more solid than 2-candle pattern on daily, when I expect some reaction on monthly resistance.
Just imagine that we have resistance on daily instead of monthly. What we usually watching for? As you've said engulfing on daily (it means on monthly, right?) and some big revrsal pattern on hourly or 4-hour. Hence on daily we also should expect to see some multi-candle pattern if our reversal will start to work.
But current resistance could generate multiple shorter-term setups, that will not be directly linked with monthly time frame.