Some extremely important “polarity” principles are being tested w/ the EUR.USD currency pair.
The principle is that “former support” will become resistance or vice versa. In his case, we have the low from 1985 and the low from 2000 showing former support that, now, SHOULD be stiff resistance.
If we power thru this level then the .618 retracement (note measured move orange arrow) looms as the next big resistance level.
believe it or not, I learned to trade as a SPOT Fx dude ..no kidding. No stocks, no futures, no ETF’s out of the Navy I jumped right into the INSANE world of SPOT FX …
I still trade the SPOT MARKET … I’ll check out the majors, then the crosses and see what’s the scoop. no kidding, I once heard that ALL the world bonds and commodities and stock markets would have to operate for 90 days non-stop to match the liquidity of ONE DAY on the Currency Market. YEW …
in this case we have a currency pair as the EURO vs the Japanese Yen. chart goes up the Euro is stronger. chart goes down the Yen (versus the Euro) is stronger … it’s as simple as that.
I’m cruising the charts waiting to get locked down in CA and saw a neat chart to my eye. I just started working this chart and …boooooom … we find a level as depicted.
Let’s make this easy, when we have a LOT of math in a really TIGHT area we HAVE to take a swing at the bat … now, that being said, that is some nice thrust from the 121.62 area but I think that last thrust up was the end of a flat correction. so the recent wave down, should (trust my count or not 🙂 not sure I do or I don’t to be honest 🙂 ) go to our targeted BUY ZONE. Say 120.50-121.
let me know if you have any questions on how the levels were derived …
oh, in the spot fx world, w/ SO MUCH math in one area, I usually give myself 30 pips below – max- for my stop out. w/ the liquidity of the FX and the math as shown, go down to a 1 minute chart for the entry .. seeing these levels hit, instantaneously watching the reaction and to think that w/ a home computer and some PATTERN work the entire world STOPPED selling EUR vs JPY and started BUYING EUR vs JPY. still amazes me … I’m always surprised to see this insane way to look at anything rational about the markets work from time to time ….
good weekend to you – Bart
The notable aspect of Bitcoin is the CRUSHING of the Gartely 222 SELL PATTERN in/around 14-15k. As you have seen me blog before, failed patterns aren’t fun because IF you took the investment/trade THEN you probably lost money. But, to try and figure out “where” you are they tell you a lot. The “usually” result in explosive moves higher or lower depending on the the PATTERN being a BUY or a SELL.
As we approach new highs remember, this is a 5th wave … yes, it could explode higher and higher and higher ….but, the euphoria, the political landscape, the talking heads, the “insert something to fuel the rise here” are all going to be blathering but our job … trust the PATTERNS.
If/when we do get a nice pullback the levels of FAILED PATTERNS are usually good support or resistance depending o the type of pattern.
The 21-23K level is a BIG TARGET as it represents an AB=CD from the ALL TIME low and a 1.27 extension. It SHOULD be stiff resistance if not a big ole target.
Last, just take a second to study the 2nd chart below. Remember the CHAOS of the BITCOIN craze …? Well, if we take the point labeled “S” (start) and follow it to X then A= .786 SX. From there, just look at the relationships that were almost PERFECT in this heightened GLOBAL market. Can someone explain this to me …?
Stay safe, thanks – always – for reading.
Bart
