[elang]

How you could have determined the price was going to reverse at 75% of .9457 to .9600 using the gap.

We have three types of gaps.

1. Breakaway gaps
2. Midway gaps
3. Exhaustion gaps

Breakaway gaps occur at the near end of a trend. It indicates the reversal and initiation of a new trend in the oposite direction.

Midway gaps occur in the midle of a movement. They indicate the midpoint of a movement, the approximate 50%. (Using this information you could have eyed an approximate termination of the correction started at .9457 around the 75% of .9457 to .9600 using the gap.

Exhaustion gaps occur after rappid rallies. The price simply looses steam and reversals and position terminations happen so massly that there is a price jump/gap.

You will notice the gap, met support exactly on top of the falling trend line, which is the same area it is currently testing support now.

We will need a good break of the .9450 area to reach below the trend line and continue on downwards to targets like .9312 > .9260

I am a little over 100 pips Live in unrealized profit from the short i entered last week, not forgetting the other 100 pips bagged last week aswell. It is all recorded here.

I didnt close my position at the correction as technicals said the price was coming back down, so i held throughout the weekend, the gap, the correction etc.

My bias is pretty much short for the moment.

If you werent short already from last week and you only got in on the correctional tip today, i recommend you set a stop around .9600.

Thats all for now folks.
Regards,
E. Lang