when I get ready to put a “position” on I ALWAYS erase the chart and start at the longest, most “biggest” time frame that I can use …
in getting ready to put a “positional” idea to work I like to understand where it’s been and where it’s going … as they use to say in the Navy – “go big or go home.”
so, in order to do this I’ll put the chart on first and then discuss what I “see” – not believe.
- Euro started trading in 1999. Synthetic (based on interest rates, GDP, compilation of combined currencies, etc) prices are shown in the black box.
- RSI – lowest, ever. note, don’t need bullish divergence to get this thing moving UP big
- Trend line from 1984 appears to be in force …
- It hasn’t closed above 1.12 for 6+ months
- the “extension” point 2005 low nailed the low this year at the 1.27 extension point (square root of 1.618)
- a break down from here “should” lead to .9910 or .9000
Mirror Image Foldbacks .. they are planetary in nature and think of the rule in math .. the angle of incidence equals the angle of coincidence. yup… price will come INTO a point and, sometimes, go back out that point in the same manner.
- note the foldback point … then note how after the 2009 high we came down the EXACT same way and now it appears we are in the final blow off move lower … I think there is lower to go based on this foldback picture.
now, look at the price swings present on the foldback – they are almost exact. I like this foldback picture – so believe we have another move lower based on that picture.
so, where are we now?
if we go down to a 4 hour chart we’ll see that after we completed a A-B-C correction from April the market moved down w/ 5 waves. W/ that in mind – note there was a higher target around 50 pips away … bummer, as I was waiting on that one. so, note a little more push higher and then it’s time to make the decision to deploy capital.
THE ONLY THING I KNOW IS MY RISK .. and that is the shaded red area. THAT IS ALL I CAN CONTROL ….
Cheers and thanks for reading …