Technical Templates Continued

[hawkmoon]

good morning to you guys.

I have looking at this eurousdoller on my large charts and ther is lots of steps it has moved on all of this moves up to 14150. if the traders think thay will like to short the euro back down below the low of the last week I will be thinking at 13550 next level for it to drop loking on my four hours charts.

Would the traders who look at longer time for their tradeing also be thinking about thes such levels sean & andre? what else can I look at to see beter of some importent level that these long time trader is planing.

[Sean P]

Would the traders who look at longer time for their tradeing also be thinking about thes such levels sean & andre?

what else can I look at to see beter of some importent level that these long time trader is planing.

Well you could strip your Daily chart back & take a look at the bigger picture.

If you look objectively at this aggressive move up off the years lows you'll notice that it's put in a very visible 2 leg uplift.
Leg 1 from 1.19 to 1.33 covered 14 figures & pulled back 50% to 1.26 in August.

Using the 1.26 pullback as the start of leg 2 it's so far covered a similar distance (15 figures) up to the current high at 1.41

If traders decide to blow a little froth off this 2nd leg at 1.41 then technicians will begin eyeballing a possible mirror scenario of leg 1 playing out.
That will put the early August 1.33 major swing high firmly on the radar as a likely c50% medium range pullback target of this 2nd bull leg.

As with any other analytical scenario just be aware of what other players will likely be referencing, tuck it away in the background & wait see what the market actually decides to deliver.

If it does begin to turn over & it looks like picking up a head of steam, then you got a mid-range zone already tagged on your radar to run a few numbers off.

Even if your preference is for a shorter-range type model outlook, it doesn't do any harm to take a broader sweep at the market structure & map out a couple of each way possibilities.


Of course as you drill down a little further you can get a clearer look at these big levels. They'll always display either solid previous demand or supply footprints to help you get a read on the price action next time it revisits a key level.

[hawkmoon]

If you look objectively at this aggressive move up off the years lows you'll notice that it's put in a very visible 2 leg uplift.

As with any other analytical scenario just be aware of what other players will likely be referencing, tuck it away in the background & wait see what the market actually decides to deliver.

thank you sean for showing this view to me. i look to the charts of the daily eurusdoller many times to see the levels that you all show us but i never to think like the way you have for seing this price posabilty.

it is very clever to see like this how the price actoin moves to and back at the levels that are watchd by fibonaci traders also. it makes me know i have to think clever this way also.

[Ray_1]

Today GU looks to be on the bullish side. Got in at 1.5844 using a M5 chart when price retraces back. Get myself positioned and see how price reacts to 1.5870 resistance on a H1. Place my stop loss on a M15 previous high at 1.5800.

[TalonD]

Today GU looks to be on the bullish side. Got in at 1.5844 using a M5 chart when price retraces back. Get myself positioned and see how price reacts to 1.5870 resistance on a H1. Place my stop loss on a M15 previous high at 1.5800.

hmm... I was thinking it looks good for a short about 5866

[DoubleEcho]

Thats a brave decision Ray. There aren't many who'd buy a pullback at the top edge of the average days range, so I hope it jogs on up the hill to reward your courage.
As a matter of interest, what's your next upside on that trade?

[DoubleEcho]

I have to admit I'm struggling to find good entry points in this sideways chop that we seem to be entering.
How could we adjust our strategies to take advantage of this new market behaviour?

From what I've read they don't make adjustments to the core base of their structure. I think you'll find that once they get stopped out or they exit part of their position due to a change in market behavior, they stand aside until they can get a better read on what's influencing the price action.

You trade intraday don't you Matt? I believe I also read where they don't intentionally budget to take an awful lot of intraday positions, therefore your market expectations & requirements will differ from theirs even though you're looking at similar technical information.

[Ray_1]

Today GU looks to be on the bullish side. Got in at 1.5844 using a M5 chart when price retraces back. Get myself positioned and see how price reacts to 1.5870 resistance on a H1. Place my stop loss on a M15 previous high at 1.5800.

I had to admit this is a wrong trade choice. GU did not go where i expected it to be. I did not take note of the average trading range. Seems like I have much more to learn.

[Ray_1]

I have to admit I'm struggling to find good entry points in this sideways chop that we seem to be entering. Our classic triggers at Day/Week high lows are only taken in the direction of the wider trend and by now the trend is sideways.

How could we adjust our strategies to take advantage of this new market behaviour?

One most important lesson in ATT I learned is inactivity is regarded as a "position" in the markets.

[Sean P]

How could we adjust our strategies to take advantage of this new market behaviour?

I have no idea Matt.

As DoubleEcho stated, if market conditions aren't offering us satisfactory or acceptable opportunities to trade based around our usual prep & trade criteria then we stand aside until it does.

Fortunately we're in a position where we don't have to adopt or absorb unacceptable high frequency risk exposure on a daily or weekly basis if we don't want to.
There's absolutely no future in that exercise. We'd rather hand the elevated risk conditions across for others to absorb.

I guess if your arm was being twisted to take something on this week then the opportunity we highlighted back on Monday regards the 1.3870-90 level on eur/usd would have been a likely candidate?

You missed the first pullback opportunity today if you were in Europe as it played out during the Tokyo business morning, but you got a second bite of the cherry when it pulled back into the late morning London action.