Update to #21
Hi all
Well yesterdays action on the EURUSD made it worth an update, as we know from post #21 this pair were at a point of potential major resistance and have reacted accordingly. The divergence highlighted on the 4HR seems to have kicked in.
As I mentioned in one of my earlier posts this is still very much a work in progress. Employing these methods on short time frames presents me with some difficulty as I cannot conscientiously handle the work load, particularly if I have several pairs on the go at the same time, therfore I shall limit myself to the daily and the 4Hr chart.
An explanation of the channel lines on the chart. The white channels are a linear regression drawn from the low/high of the trend to the lowest low/highest high of the current trend. Linear regression is just that end of story, The blue lines are a standard deviation channel drawn from the same points as the LR. These however I set to suit the trend I am measuring, nothing fancy just by eyeball, in this case they are set to 0.5 SD's.
Note on the 4Hr chart I have marked a minor abc, the measuring distance = 69.2pips and the white lines on this chart are space at 69.2pips measured from c. Also on the chart are three yellow ???, I am not certain if these should be marked as a major ABC (still a work in progress). My personal preference would be for a major ABC to develope on the daily chart before measuring. I have however the marked points on the 4HR in yellow only the first is visible and has been hit. The measuring distance for these points is 260.6pips
The 4HR chart is now oversold both in terms of the stoch and MACD and looks as though it may correct/consolidate within it's channel. As yet nothing on this chart to give an upside target. Perhaps a bounce back to the channel lines on the daily chart.
The daily chart to me still looks bearish although as I type it may be trying to bounce of the 4hr support at 1.28632. The stoch is still down whilst the MACD is still in an overall uptrend but has turned down and could go down further.
Given the current mixed view on the charts I am sitting on my hands.
I am no Elliot Wave expert but if anybody has one of those wave counting programs and would drop in a wave count of the daily and 4HR it would be appreciated.
Thanks Nut
