If you spend 10 seconds really staring at the chart you will see the 3D pop out. I wanted to use this chart to show that things are not always as they seem.
When working on Euro, Gold, Oil, SPX or even BITCOIN there needs to be an appreciation of the dollar, regardless of your sentiment, it's the sentiment of the market as a collective. Many new traders go into crypto thinking the market only goes up. No surprise, they get burnt and keep trying - with little success.
When trading, you need to assess the larger scale view, I don't just mean timeframes - I am talking about the economics, the logic and reasoning behind the "why".
Back in August I highlighted the severity of what we have seen in terms of the last 18 months, although people seem to "assume", it's more to do with what it actually means???
This has created more volatility in the market overall - seen Oil go to negative numbers for the first time in history, we truly are in a whole new game.
So let's breakdown Euro; By starting with DXY.
The dollar has hit a key level of resistance on a larger scale move down - this can be highlighted here as the zone itself;
Logic for the moves up, show that there is very little impulsiveness - highlighted here by the red rectangles;
We are seeing counter symmetry as a whole - showing the chart is willing to comply;
How does this fair for the Euro? Well, most retail news outlets are currently suggesting a stock market collapse is imminent and that would imply DXY to go on a major rally, all tradable instruments should therefor fall against the dollar. But what if there was one more move to the downside?
This would mean the analysts at the retail outlets are wrong, it would mean the rich have another shot at getting richer and the poor will again put it down to bad timing.
I spent a bit of time drawing some cartoon lessons and thought a 3D magic eye type depth of market might at least get a few smiles.
You need to stare at the chart and let your eyes go through the screen and you will see the depth on the @TradingView chart
When you run extension levels we can spot the effect of the double top - but have to remember who wins in these scenario's 9 times out of 10??
I have written articles on Composite man and how the strong operators profit from the weak.
There's a target level for a large scale reversal - I feel this is the last move before news turns 100% negative, stock market apocalypse and the reality is it's another opportunity for the wealthy to play the last leg of Elliott down - just as the retail start to settle; rugs will be pulled.
I hope you enjoyed the drawings & of course the article.
Enjoy the weekend!
Disclaimer This idea does not constitute as financial advice. It is for educational purposes only, our principle trader has over 20 years’ experience in stocks, ETF’s, and Forex. Hence each trade setup might have different hold times, entry or exit conditions, and will vary from the post/idea shared here. You can use the information from this post to make your own trading plan for the instrument discussed. Trading carries a risk; a high percentage of retail traders lose money. Please keep this in mind when entering any trade. Stay safe.