6E has been moving roughly sideways for the past week. Wednesday's rally turned into a show of weakness as a breakout over 1.2500 failed to turn up any follow-through. Small consolation for bulls is the turn up of support at 2420, by the hair of their chinny chin chin. This level has now been challenged several times and right now the pressure appears to my eye to be on the down side. Though my overall bias is neutral given the technically range-bound price action, I will be looking to sell any rally until some sign of renewed demand over 2500. It may be that we simply need to test 2375 again in order to find that renewed demand. Or it may be that over the next week or so the market needs to go back into the 2250 - 2350 range before taking another shot at ending the current pullback. Of course, the market may surprise us today and just bounce its way to the top of the current range, or simply maintain its noncommital sideways march, which could make for somewhat difficult trading.

Shane, those Supply/Demand area's you have are perfect, awesome chart, great trades.

Thanks buddy, one of the things I was working on during my month long January hiatus.

A quick question for everyone... looking at the monthly chart, ~1.2560 is an interesting area to be playing in. There's a couple of instances of stopping power in the past at this level.

I'm sure other people are looking at this, but curious how much weight past precedents like this can carry forward? Is it going to be tough for the bulls to break through this area? I know nobody can say for sure but looking for input. Thoughts?

I know I should probably be looking at 6E rather than M6E when it comes to the volume action. But most of the time the story is roughly similar between the two. [/IMG]

Thanks for posting this, it's a great chart. Yes, I think this is an important view but I have one comment I want to make: If the time frame of one's trade is a few hours or less, let's think very hard about whether a piece of price action from years prior is relevant to our needs.

I'm not saying it's not useful. More a question to consider. My personal opinion is that if there is any information at all that I can throw away and still succeed, I'm going to be first in line to throw it away. I'd go out on a limb and say that for intraday trading, for me, even the H4 probably only needs to be checked once every couple days just in case there's a level from the past couple months that is off screen.

As for this monthly view... My take away is that yes, we shouldn't be surprised if things start to get a little messy up here. But then... the market is probably going to tell you on the H1 pretty quickly when things start getting messy. Is the monthly going to make me second-guess taking good longs if we break 2560 and 2600? I hope not. Will it make me more likely to take shorts if we hit some kind of climax? Eh, I think I'll probably get signals for that on the lower timeframes too.

Again, awesome chart, important chart, but made me think about why I don't have any charts above H4 for day-trading. I check the longer timeframes on the weekends so I'm peripherally aware anyways, but I actually make an extra effort not to put too much weight on them for the intraday trading.