Hi guys!
Does anyone know what were the reasons for such big moves? Or if anyone knows where can I find the reasons?
THANKS!
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Yeah, I get that. But I don’t know where to do it. There is a lot of information out there, but vast amount of that is just useless…
You are looking at double and triple tops and bottoms on the weekly charts. High probability trades if you now what you’re doing. And because those are weekly charts you need some decent capital to trade them.
Unless you’ve got some prior formal education and experience in economics: trying to understand the fundamentals is futile and a waste of time unless you’re somebody real special and with an uncanny ability to understand them and relate them to future market movements.
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Dotcom bubble bursting perhaps? That was around 2000-2002 I believe. Google Search is your friend.
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Depends why the OP is asking. If it’s for the sake of interest then by all means look around.
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I have a degree in business and economics and I get most fundamentals. And that is why I need to know what happened on charts… Double/Triple bottoms/tops are, as you said, untradeable on weekly chartsif you don’t have large capital. .
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Well that’s nice to hear then. You are one of a very few I can tell you. Really nice to hear.
Let’s put it in context though (for others that may be browsing the thread):
Those moves look fantastic. But even if you were lucky enough to bottom pick them (let alone trade them correctly as double or triple bottoms or tops): take a look at the actual number of pips in those moves. Unless you were trading with really huge capital it’s not worth it bearing mind those are weekly charts. Furthermore: there’s nobody that I know of, myself included, that would be able to hold those trades for that long without getting impatient and closing them out at some arbitrary point. Also bear in mind that unless you were trading with no leverage at all: you’d be paying interest on a daily basis. There’s sure better ways to trade and make money.
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Does this mean you rely mostly on TA?
It could be good to know what is behind this big moves not for reason to trade them on 1w timeframe, but to trade them on 1D or less… It is a lot easier to trade when you know direction of the trend. Big money is in those moves and they last couple of years in some cases…
Nope. All pretty well detailed on my thread.
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Maybe. Problem with that theory is it’s a trend until it’s not. And if you look at those charts: in spite of there being a clear trend in one direction or the other (with hindsight of course) there’s some weeks where price goes in the total opposite direction of the prevailing trend. So for an entire week you’d be trading against the trend on the daily (or shorter) time frame and be getting nailed trade after trade after trade.
But hey: my expertise stops with the double and triple tops and bottoms. If you can make sense of it and you’re confident in your understanding of fundamentals then it’s certainly not for me to say they’re without merit. Just isn’t my thing and wouldn’t work for me because the chances are I’d be wrong in calling the probable future direction based on a fundamental analysis.
Not to mention of course that I’d not be trading FOREX. So there is that of course.
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As a resistance for EUR / USD, I see Senkou Span B. This is slightly closer to 1.1300, the black line on the chart. Perhaps the euro there will turn down, or there will be a correction.
The recent rally on the EURUSD may be missleading, since the pair is still inside a bearish channel on the daily chart. The upper boundary of the channel is currently around the 1.1300 level, with the 200 day EMA just above it.