The setups I include on this blog are used in conjunction with the 3/10macd and the criteria I ascribe to it as a way to alert me to an existing condition of price. The key concept to take away from this blog is that I try to anticipate what will happen on the higher time frame by using a faster time frame to trigger the trade setup. I do not trade a "system" I use two indicators to clue me in to price conditions. Please read the Disclaimer located in the sidebar of this site. I can be contacted via email at
I am always open to questions, comments, or suggestions on how to improve this blog.

Saturday, January 19, 2013

weekly EURUSD

Weekly look at the EURUSD

Weekly (left) chart shows a momentum sell divergence, but that's not particularly bearish (until it is) unless we start to see some negative momentum.  Potential is that we broke out of (and so far sustained) the neckline of an inverse head and shoulders.
The daily chart (right) shows decent trend development while we are currently oscillating in the upper half of the most recent bullish momentum (shaded region).
No real clues as to what may come; we either break higher (which could see a strong move) or we break lower (which has a number of support levels to test).

Carrying over the shaded region from the daily chart into a time frame faster gives us a closer understanding of what's occurring.  Oscillation (symmetrical cycles) within a defined range.  Below 1.325 might see panic selling (but has support into the 1.31's) while over 1.34 is breakout territory (which could see chasing/and/or short covering squeeze).  3/10macd showing 3d (on 240m chart) which could lead to a bullish move.  But the oscillation range has to play itself out.

Adding a time frame faster in the charts below;
   Price is within the 240m moving average window and we wouldn't want to see it trade at these levels for much long and remain bullish.  The faster-still time frame on the right shows price under it's two moving averages with a 3/10macd showing bearishness (4c-4d).  It's on this time frame that we would like to see the 3/10macd have the fast line show an ABC wave (turn positive, pullback, then tick back up positive) before doing anything bullish.

basically....needs moar data

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