EURO and 138 …
usually try to stay away from blindly buying or selling the .618 retracement … that number is the usual first introduction of people using leading indicators and sometimes it works and sometimes it doesn’t and people eventually say “hogwash” and run away from these techniques — GOOD! however, when we have projections or overlapping patterns then I get interested in this level. here’s the .618 retracement overlapping patterns:
here’s where the 138 gets interesting ….
1) the Euro vs USD, believe it or not, has been down 138 days. and, having seen my past posts on the 66.6 months for the S&P and 1920 days since the low and the concept that PRICE equals time then if we do a calendar day count from the last high on the EURO on May 09, 2014 we get 138 days. How do we convert that to PRICE in the FX ? Well, we really don’t care about decimal points in the world of vibrations .. we care about the NUMBERS so convert like this:
- HIGH was 1.3989 or 1.4000 (work w/ me people)
- 1.4000 = 4000
- 138 days = 1380 (also pretty close to 1382 or 1.382)
- 4000-1380 = 2620
- 2620 = 1.2620
- 4000 square root = 63.25
- (63.25-12)^2 = 1.2626
so, not trying to be a hero here BUT back when the dollar was at 79 I was recommending the BUY … but now, everyone and there brother is lighting up the twitter universe, CNBC, Yahoo Finance, Marketwatch and blah blah around the DOLLAR DOLLAR and the bearish sentiment for the EURO is massive … a perfect time for the EURO to bounce ….
Carving out a bottom folks … and, while I remain extremely bullish on the dollar am expecting the classic 3 wave corrective movement so … am going to let the .618 or .707 (square root of 2 – 1.4142, 1/1.4142 = .707) level prove it and then look for an OPPORUTNITY to BUY the pullback that SHOULD be a classic 3 waves …