A-B-C-D Trade - page 273
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On Jan 6th, we posted GannBox based on start = week of June 6th low price of 1.18754.
The attached is an example on a 5-digit broker's chart. All we have to do is add another zero to the height (prices). The last post had 4-digit chart, with height of 3600.
Therefore, this one uses height = 36000. Width (times) remains at 360.
The horizontal S&R have been respected, and as anticipated, the red 1/1 angle acted as support for last candle and current candle thus far.
Split-screen has 15-min chart on the left, with session colors and MML. The top was illustrated in last post. We add the fib expansion ABC to obvious largest swings.
This produced the FE 61.8 as bottom, same as previous significant low on Jan 8th of 1.26649, and also the -1/8th MML.
The chart on the right is a continuance of the 1-hour PSQ9 and fib channel plot. We can see the 15:00 bottom intersecting the Moon 90-degree and FC 161.8 level.
This is the bounce play up, which rose to the FC 131.4 and horizontal Mars 90-degree. When plotting a retrace based on Euro session high/low, the bounce made a quick hit to the 38.2% fib 1.27107 during the 17:45 period.
S/L options included the Mars 45-degree 1.26470.
And as always, allow spread/cushion.
TP1 = 23.6% fib of 1.26922 R/R = 25/20
TP2 = 38.2% fib of 1.27107 R/R = 42/20
This is a continuance of our 4-digit chart posted Jan 5th post #2705. In that post, we mistakenly cited the red 1/1 angle as 1.2787 instead of 1.2687.
With this particular price feed, the 1/1 support was even more precise.
Looking left, we can see the price pivot during August 2010. This is the obstacle zone EUR/USD is fighting as major support.
The next support in this GannBox is the diagonal gray 1/4_angle4 1.2559. The Aug 22nd low was 1.2587.
A horizontal fib extension plot has the 138.2 at 1.2620.
German Chancellor Markel has attempted to verbally support the Euro today (again,) by stating intention to strengthen the bailout vehicles (funds).
You can find the indicator AstroIndicactor4 in the Gann Is The Mann thread in the Indicator section. Astro tools of this nature can plot into the future.
Don't forget to check "Allow DLL Import" in the Common tab of edit function. Set Natal Date to 01.01.1999 for EUR/USD only.
Also on this daily chart is the RSI set at 4-period, and MurreyMath1.0.
We labeled turning points generated by AstroIndicator4 when peaks and dips occurred just prior or on signal day, that were OB/OS 85/15.
The support and resistance provided by MurreyMath 1.0 further improves signals. These S&R levels can also be used for stop-loss placement.
The handful of signals, after filtering:
Sept 6th BUY
Oct 4th BUY (day after signal)
Oct 30th SELL
Nov 27th BUY
Jan 9th BUY (day after signal)
EU Central Bank and BOE rate decision ahead at mid-day.
USD/CHF testing .9520 support.
The ZUP v86 on USD/CHF 30-min.
Although it's an imperfect Bearish Gartley that triggered a short at Point D on Jan 11th 16:30 High of .95664, there are other uses for this pattern.
This pattern's swings form left to right are X-A-B-C-D.
Points A-B-D line up. We manually drew a trendline there.
The 2 dips are swings A and C. We manually drew a trend line there.
Price is now declining after breaching support at .9520. The A-C trendline should provide support, at approximate price of .9500. Lurking bounce orders there. Trading the break of .9520 is joining a move-in-progress.
The ZUP also plotted 3 lines, and price is now at the middle line labeled reaction_1.
Price made the hit to the A-C trendline just now, marking price there at .9496. The bounce up is ongoing, so we shall see how far it gets.
Session high/low has
23.6 = 07
38.2 = 14
Here is the same pair with PSQ9. We labeled 5 swings on what is called a Wolfe Wave. At the Point 5 top was BAJA bearish divergence as well.
The blue trendline is the aforementioned A-C support, which is not part of the Wolfe Wave. The TP for the WW is actually at the 1-4 trendline, with approx price of .9450.
That is near the Mars 180-degree (green), and may be a 138.2 extension of swing 4-5.
However, with the ECB and BOE rate decision, it may not have time today to make that extension.
ECB and BOE held rated unchanged. A statement by ECB Chief, together with subsequent negative U.S. data, sent EUR/USD upward.
This dragged USD/CHF further down, and to the anticipated target area of .9450. Attached is the 1-hour with our previous Wolfe Wave plot.
Price probed lower near the Moon 180, and the 161.8 extension of swing 4-5, marking a low thus far of .9431.
The pink horizontal trend line is merely anticipation of bounce level at the Low (swing 4).
Here are the 5 swings on the 1-hour:
1) Jan 10th 08:00 .9510
2) Jan 10th 09:30 low .9465
3) Jan 11th 01:00 high .9523
4) Jan 11th 09:30 low .9481
5) Jan 11th 16:30 high .9566
The entry is usually effected at swing 5. This particular pattern had a massive overshoot of the 1-3 trendline leading to swing 5. Nevertheless, it is considered O.K.
One technique for entry would be to enter after price drifted back under that 1-3 trendline. We can see that happen, followed by a bounce at the Moon 270 back up to the 1-3 trendline.
From there, an ABC formed, resulting in the FE 138.2 = .9432 which was bottom for the move. Chart 2 illustrates this.
A = Jan 12th 07:30 high .9545
B = Jan 12th 12:00 low .9479
C = Jan 12th 13:30 high .9523
D = Jan 12th 15:00 low .9432
Here's a nice little example of "Zombie Banks" refusing to write off bad loans.
Weil: Why Zombie Banks Hate to Write Off Bad Loans - Bloomberg
or cut and paste:
bloomberg.com/news/2012-01-12/financial-frankness-is-a-bad-dream-for-a-bank-commentary-by-jonathan-weil.html
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We neglected to mention that Spain and Italy had successful bond auctions that help propel EUR/USD up.