Friday, November 30, 2012

EURO-US$

Here is an example of the geometric technique by subscriber "Dolemite". His insights into markets is phenomenal...he has contributed greatly to the work I do.

Note the low @ 'X' where AF and BC intersect...and the top where AF and WY intersect.

Click here for Dolemite's updated chart

8 comments:

Anonymous said...

Does this imply eur$ is tracking along AF, and is next headed for Z? Thank you in advance.

Fibocycle said...

AF seems to be the 'strange attractor' and WY short term resistance. A move above WY crossing above AF would be considered quite bullish for the EURO. A break below BC and XY would not be good for the EURO. Point C will be an interesting time-price juncture as well as the intersection of BC & XY.
Dolemite...any prognostications?

Dolemite said...

I use this method in conjunction with candlesticks to get signals.
Friday's daily candle was a very strong shooting star with a long wick which touched both WY and AF and rejected both and closed towards the lows of the session.

I would be short with a stop just above Friday's highs looking for a break down to the BC
If price doesn't get to BC and enough time passes and we get far enough on time axis where XY crosses BC, I would consider that a sign of strength, and would look for price to be supported by XY and be nervous about my short....

That is all speculation though... From the information presented to me currently, I am short looking to take 1/2 off at BC and play the other half for a BC break with a new support at AC (not drawn)

I will update this trade when price does something significant.

Fibocycle said...

u da man dude

Dolemite said...

1 final thing about that short entry. Using "the pebble effect" as fibocycle calls it, Friday was vector length AB in time from the low of A. When you get a bearish candle, off of geometric support, at a time you might expect a trend change (as was the case with this trade), I would consider that a bet worth making.....

Gaurav Gupta said...

Dolemite - is it possible to post a high resolution charts. My eyes are too weak to see the numbers corresponding on the Y axis.

Thanks.

Dolemite said...

http://my.jetscreenshot.com/13957/20121130-odda-68kb.png
Here is a more zoomed in version of that pic
If that is still not enough, use your browser's zoom function to magnify more...

We are in the midst of a big up move that has taken out yesterday's highs.
We currently are at the highs of the session, above line AF.
If we can close above AF, that would tell me the EurUsd still has some life in it, especially if it can get above line BW (not drawn)

Thats why we place stops... ;)

Fibocycle said...

I have posted the link just below the original chart
.