I've been asked to resurrect the old thread that dealt with pivots, psychs and trend lines. (I should probably put fibs in there also)
Not Sure why... only a handful of you read the first one.
Let's take a look EURUSD on a 4HR chart.
It's a naked chart with only a fib of our last down move and a trend line.
Does the EURO have enough energy to make it to the 50 level? (Near the powerful psych level of .5800.)
I'm guessing yes.
However... if it does... will it have enough energy to make it past three barriers that are creating strong bearish confluence?
NO WAY.... UNLESS NFP paints more horribly than estimated.
What are they:
1) .5800 level. Anything ending in 00 are the most important psych levels.
2) %50 fib level of current down leg.
3) Trend line from recent highs
Should these three levels drawn close to one another the confluence (I like that word) of the three will seriously deter the bulls.
Prior to the European session I'll post possible trade set ups based on this approach to trading.
Not Sure why... only a handful of you read the first one.
Let's take a look EURUSD on a 4HR chart.
It's a naked chart with only a fib of our last down move and a trend line.
Does the EURO have enough energy to make it to the 50 level? (Near the powerful psych level of .5800.)
I'm guessing yes.
However... if it does... will it have enough energy to make it past three barriers that are creating strong bearish confluence?
NO WAY.... UNLESS NFP paints more horribly than estimated.
What are they:
1) .5800 level. Anything ending in 00 are the most important psych levels.
2) %50 fib level of current down leg.
3) Trend line from recent highs
Should these three levels drawn close to one another the confluence (I like that word) of the three will seriously deter the bulls.
Prior to the European session I'll post possible trade set ups based on this approach to trading.