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by Ashraf Laidi
Posted: Feb 20, 2010 5:00
Comments: 30765
Posted: Feb 20, 2010 5:00
Comments: 30765
Forum Topic:
EUR
Discuss EUR in this thread
one more thing... i use 4/8 hour candles to verify if there is a reversal short term... whenever it hits the support/resistance lines... the 4/8 hour candle would most of the time give confirmation to go short or long.... if you wanna play safe... you won't get the best price... being a bit aggressive will give you good price but at times you could be in an awkward position... :)
if you take a look at longer term charts.... you could draw lines thru support turned resistance and vice versa lines... from the main line you can chart several parallel lines that has almost equal distance from each of those lines... and amazingly all those lines at one point served as resistance or support lines... furthermore... i draw 2 diffrent lines with one slanting upwards and the other one slanting downwards... once it has broken above and settles above that resistance line... then that line would act as a support line... and vice versa.... if this forum had better charts.. it would have been nice...
one more thing... as cygnus has mentioned... i use GANN FAN on very long term chart... to indicate reversal or breakout... it clearly shows the next main target once there is a breakout.... very useful in determining long term trend a or if there is a possible reversal....
4120/30 level was a minor resistance and expected a minor correction from that level.. but it just blasted thru... but now 4200/20 would be a very strong resistance... and i'm expecting pullback to 3800/3850 from that level... b4 moving higher
now main support line runs thru 4030/50 level... once Euro settles below this level... it's a clear signal that bigger correction has started and expect dip back to 3800/3850 level...
gl/gt
There are many ways people identify potential support and resistance levels. The most obvious is looking back at levels where there was previous support and resistance you mentioned.
Then there is trend line support and resistance. Some also look at channels where there is an upper and lower trend line.
Some people also use pivot points that are based on a calculation using the open, high, low and close price over a prior time period.
Then there is fibonacci ratio levels.
I recall subway once mentioning that he uses a Gann fan type analysis to identify support and resistance.
You also have wave analysis as in Elliot Wave theory. This involves pattern recognition and fractals.
now facing strong resistance level around 4190/4220 in two diffrent time frames...
expecting pullback after hitting 4200 level to first main support now at 4030/50 level...
if this level holds.... expect 1 more push to 4240/50 level b4 moving lower....
clear break below 4000 level suggest interim top in place for correction down back to 3800/3850 b4 moving higher to new highs above 4282....
gl/gt
Kam
Kam