The main trend for EURUSD is still down but as shown in the chart there are opportunaties for counter trend trade as shown in the first chart.
EQ13042-13048-13054 was formed, also the BP is higher compared to the previous BP13042 and BP13020 which now act as support levels.
so when price went above 13054(breaking the eq), a buy was done which will be a high probability trade with 3 support levels and including BP13048
Target price will be around 13091 and stops will be trailed as price move in our favour.
Price should be filling up the dotted rectangle before making a move down. Also the 2nd chart show resonance due to eq12991-13042-13093, as there are 2 eqs showing the same point, it is highly probable that price may reach 13091-93.
Time frame = intra-day
Trend = up (once break 13054)
Entry = above 13054
Stop = below 13034
Target = around 13091
Last edited by ecmf; December 23rd, 2011 at 03:36 AM.
Reason: wrong charts uploaded.
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Currently the market is paving the area above 13020 and the balance point WILL CHANGE through this paving process, until we see market starting to move down then we can be sure that the NEW balance point is valid and can be used as the center for new equilibrium.
we obtained the large balance points (by combining) to get 12850 But 13042,or 13048 are temporary balance points which will be changed through the paving process.
Therefore we will have to wait for the paving process to complete and price start to come down before we can analyze further.
attached is a chart done after the close of market on 23 Dec 2011. The eq 13195-13070-12945 will be important in the following days. The lower part is fairly saturated and price may pave the upper part before continuing the down trend.
If price do pave the upper part first, the drop will be delayed but it will be inevitable that price will drop lower. If price does not pave, it will fall first and it may take a while before going back up to fill up the upper part.
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attached is a chart for CL done yesterday 26 Dec 2011. As can be seen in the chart, price is currently paving the upper half of the eq 8917-9625-10337. Price will be moving within this eq and for now support can be found at 9271 and resistance at 10060 as shown by the dotted horizontal lines.
As the upper half of the EQ is fairly saturated, high chance for price moving to the downside.
Today was a challenging day trading CSI as the market was in zigzag. Price went down at the open before turning around and then went down again back to near the opening.
The chart show how by following the intraday eq as they are being formed, we can follow the invisible hand and prevent getting suck into the fake rally.
This is a trade that was done earlier, the chart show a eq13017-13048-13079, a trade was done when price move above 13048 which act as support, there are also support at BP13020, BP13042 and now BP13048 which shows a temporary uptrend.
Trading Time frame = intraday
Trend = uptrend
Entry = above 13048
Stop = below 13038 (stop move to BE when price move above 13070)
Target = 13079