4xForecaster
Long

Update: Bullish Signal Confirmation | #EURO $EUR $USD #Forex

FX:EURUSD   Euro Fx/U.S. Dollar
503 0 2
Friends,


In continuation to the analysis started on February 15th (see it here: https://www.tradingview.com/v/dCviDOt3/), we are now receiving a bullish market reversal confirmation signal in the direction of the targets, which we had defined last week, namely:

1 - TG-1 = 1.38632 - 15 FEB 2014

and

2 - TG-High - 1.38997 - 15 FEB 2014

While a directional market reversal confirmation signal is what we rely upon to determine a position (i.e.: "Plan the trade, then trade the plan"), we still like to evaluate the technical landscape to draw contingency scenarios, in case the plan petered out. In our experience, one of the most common reason traders lose money is to first plan a trade based on specific conditions, but once the conditions change, the trader creates new reasons or develops a looser tolerance to remain in a trade with no conditions related to the first plan. In other words, if the initial conditions that defined your plan of trade vanish, so then should your trading position: Get out when you can!

Here, we have a new bullish outlook acquired based on a set of conditions that are proprietary to us, and that we like to reframe in a technical context that make sense to other traders. Following are technical reasoning that bring us to take a bullish position:

1 - Price has validated and remained along its bullish momental line - in fact, it did not even reversed to a tolerable support which we had defined back in February 15th as a 1.36282-to-1.36196 range.

2 - Price broke though its overhead bearish resistance momental line, suggesting that price has moved in a way that is mindful of the bullish support which it validated, by mindless of the bearish resistance, which it negated.

3 - A structure near 1.37350 was breached, and the market closed at that level following a shallow decline. While market can potentially open at a lower level, this landmark offers a relative point of reference to test the intent of price to continue in its bullish course. If price closes Monday's market above that level, then we would consider this ever more bullish (we look at Sunday/Monday as old positions being sold and new positions being bought, the net aggregate expression provides a relative price position that is either bullish or bearish ).


OVERALL:
A bullish market reversal confirmation signal got emitted. Combined with above technical reasoning, we believe that price is likely to run towards our targets, as defined in the chart on February 15th. A break below the "pink zone" should concern bulls. I would look at discreet price action relative to the bullish/bearish momental lines as a way to preempt any reversal - This typically occurs when price invalidates one bullish line and validates a bearish line, in which case, a bearish reversal could be underway (a bearish-to-bullish scenario did just that in the current price rallying event, if you looked closely at the channel interplay).

Cheers,

David Alcindor

PS: Here are similar use of interactive channels, as follows:

1 - EURCAD:
EURCAD-H4: Channel Interplay & Price Action Anticipation

2 - SPX:
$SPX - Chart Update | #SPX #SP500

3 - DJIA:
DJIA - Weekly Chart: Channels; TG-1 = 17402, TG-Low = 4283

4 - COMP:
$COMP - Chart: Long Term Reiterations Last About 275 Bars

5 - NAS100:
$NASDAQ-100 Chart: TG-1 = 4023 | 4xQuad | #nasdaq $nas100


David Alcindor
TradingView Moderator


------------------------------------------

We twit our signals, analyses and forecasts!
- Look me up: @4xForecaster

------------------------------------------
Ideas Scripts Chart
United States
United Kingdom
India
España
France
Italia
Polska
Brasil
Россия
Türkiye
日本
한국
Home Stock Screener Forex Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Account and Billing Sign Out