Let the market tell you – EURO quick look
- follow the black dotted line to see where the major level has been for the Euro.
- Then, follow the orange line.
- Additionally, note a nice little cycle coming in at 778 days. We are off by a week, but that’s OK and – quite frankly – the reason is a little too esoteric for this discussion. we are still in the time zone for a bounce.
- Note, from the beginning of the BULL market that started in 2000 we have used the “standard” 1×1, 1×2 and 2×1 angles but the KEY is we have oriented them to the plane of the move up that began the bull market. Follow the bouncing ball and we’ll see that the 2×1 caught the July 2012 move and now we are approaching the .618 retrace and the trend line.
- Bottom line: EURO bounce coming based on 1) structure, 2) “basic” and “advanced” time cycles, 3) trend line from the beginning of the bull market in 2000 4).618 retracement 5) the 1/8 increment of the signal reversal candle down completes a little lower and 6) we are developing bullish divergence.
- WAIT to 1) short the upcoming bounce or 2) let the market tell you a bottom is in place and then buy the first pullback that should have a 3 wave structure . (NOTE the only correction so far has been a flat. by the law of alternation, we will have a triangle or ziz-zag appear. so WAIT for the bottom…