Multi Timeframe Analysis
Hint: DXY will drop to 95
The DXY is correcting and on the Dollar Index Daily Chart, a bearish anti shark harmonic pattern had formed. 95.667 appears to be strong support to which the dollar should fall to (thanks in part to global unrest from Putin bungling royally at Ukraine and the insensitive FED statements on tapering)
Meanwhile on the EURUSD chart itself, we see a bullish anti crab pattern with price entering the launch zone after the D phase had completed.
A negative harmonic on DXY and a positive harmonic on EURUSD combined with macroeconomic factors weighing heavily on the US economy. Ergo- EURUSD appreciation for the short term.
1.16 is a viable EURUSD target. Get those trades ready.
Some notes:
We are on the last day prior to the candle close for the week and the month of February. I expect indices to hit high notes of volatility. Trade only after the uproar dies down.
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Market order position upon the confluence of valid entry rules on the 4H or 1H chart.
-=ENTRY RULES=-
Trading philosophy: Don’t short at the lowest of the bearish momentum nor do we long at the peak of a bullish impulse. The safest entries are at the end of a retrace on the 38.2%, 50%, 61.8% or 78.6% fibonacci back in the direction of the master trend.
Note: I use Daily/4H or 4h/1H market structures with wave analysis to prep for potential entries. The RSI , MACD and EMA indictors are confirmation for entries at the 4H or 1H timeframe
For SHORT:
4H chart should confirm that the bullish retrace had turned bearish in the direction of master trend. The MACD should have dropped below zero signifying a bearish environment. Price would have dropped below the 10 and 20 EMA . For good measure, check that the 4h and D1 RSI is below the 50 signal line
For LONG:
4H chart should confirm that the bearish retrace had turned bullish in the direction of the master trend. The MACD should have gone above zero signifying a bullish environment. Price had gone above the 10 and 20 EMA . For good measure, check that the 4h and D1 RSI is above the 50 signal line
Divergences:
The 4H, 8H and 12H chart can reveal hidden divergences on the RSI , MACD , Money Flow Index, CMFI, On Balance Volume and Stochastics. When one or more divergences manifest- be ready. Trend reversal is coming. My best practice is to wait for at least an RSI divergence on the 4H, then drop to M15 to see price shifting with a 50EMA aligned with the 4H divergence.
About me
I am not a financial advisor nor a signal provider. These are the opinions of a 20-year private trader in the legal profession as well as a businessman diversified in the tech and hospitality industries. My favored tools of the trade include wave analysis, price action on the 4H to Weekly timeframes and institutional order flow.
Hint: DXY will drop to 95
The DXY is correcting and on the Dollar Index Daily Chart, a bearish anti shark harmonic pattern had formed. 95.667 appears to be strong support to which the dollar should fall to (thanks in part to global unrest from Putin bungling royally at Ukraine and the insensitive FED statements on tapering)
Meanwhile on the EURUSD chart itself, we see a bullish anti crab pattern with price entering the launch zone after the D phase had completed.
A negative harmonic on DXY and a positive harmonic on EURUSD combined with macroeconomic factors weighing heavily on the US economy. Ergo- EURUSD appreciation for the short term.
1.16 is a viable EURUSD target. Get those trades ready.
Some notes:
We are on the last day prior to the candle close for the week and the month of February. I expect indices to hit high notes of volatility. Trade only after the uproar dies down.
------
Market order position upon the confluence of valid entry rules on the 4H or 1H chart.
-=ENTRY RULES=-
Trading philosophy: Don’t short at the lowest of the bearish momentum nor do we long at the peak of a bullish impulse. The safest entries are at the end of a retrace on the 38.2%, 50%, 61.8% or 78.6% fibonacci back in the direction of the master trend.
Note: I use Daily/4H or 4h/1H market structures with wave analysis to prep for potential entries. The RSI , MACD and EMA indictors are confirmation for entries at the 4H or 1H timeframe
For SHORT:
4H chart should confirm that the bullish retrace had turned bearish in the direction of master trend. The MACD should have dropped below zero signifying a bearish environment. Price would have dropped below the 10 and 20 EMA . For good measure, check that the 4h and D1 RSI is below the 50 signal line
For LONG:
4H chart should confirm that the bearish retrace had turned bullish in the direction of the master trend. The MACD should have gone above zero signifying a bullish environment. Price had gone above the 10 and 20 EMA . For good measure, check that the 4h and D1 RSI is above the 50 signal line
Divergences:
The 4H, 8H and 12H chart can reveal hidden divergences on the RSI , MACD , Money Flow Index, CMFI, On Balance Volume and Stochastics. When one or more divergences manifest- be ready. Trend reversal is coming. My best practice is to wait for at least an RSI divergence on the 4H, then drop to M15 to see price shifting with a 50EMA aligned with the 4H divergence.
About me
I am not a financial advisor nor a signal provider. These are the opinions of a 20-year private trader in the legal profession as well as a businessman diversified in the tech and hospitality industries. My favored tools of the trade include wave analysis, price action on the 4H to Weekly timeframes and institutional order flow.