In this post we analyzed the breakdowns (breakouts) of Camarilla S4 R4 yearly pivots, so called yearly floor and roof levels and what impact those rather significant events had on EURUSD weekly chart. As you see, each such breakdown generated violent moves (yellow) that often lasted into the next year. If there S4-R4 violation did not generate such a move it was because those levels were broken during the previous year or two and proceeding yearly break exhausted itself. There was no such violation in 2018 and 2019 to give us reasons to believe that the current break will not succeed.
Besides that, we have got a thinnest yearly CPR in EURUSD history. As we noted earlier thin CPRs are forecasters of volatility (and volatility is the major sign of crisis). We ought also notice CPR alternation principle (thin CPR trend - wide CPR congestion) that is often observed as demonstrated above (1,2,3 in late 1990s). By this principle, 2020 should be a trending market, while in 2021 we will see a retrace (recovery) and congestion.
For educational purposes only.
Besides that, we have got a thinnest yearly CPR in EURUSD history. As we noted earlier thin CPRs are forecasters of volatility (and volatility is the major sign of crisis). We ought also notice CPR alternation principle (thin CPR trend - wide CPR congestion) that is often observed as demonstrated above (1,2,3 in late 1990s). By this principle, 2020 should be a trending market, while in 2021 we will see a retrace (recovery) and congestion.
For educational purposes only.