Mr Trichet will help us 
Don't know if anyone is following this but just in case.....
Yesterday's gap filled a little after 8:00 and reversed downward. If it gets thru this area on the top, it is very bullish and indicates a reversal of short term sentiment. Tracking towards the next gap up around 1.5554.
For the bears....the next unfilled downward gap at this time is 1.4888.
Yesterday's gap filled a little after 8:00 and reversed downward. If it gets thru this area on the top, it is very bullish and indicates a reversal of short term sentiment. Tracking towards the next gap up around 1.5554.
For the bears....the next unfilled downward gap at this time is 1.4888.
Here is something else to think about watching. It is very important and will give you some ideas. You can thank me later. I like nice cigars.
I know there are some seasoned traders here, but in general some new to the industry. I always wished someone would have given me some things to research and explore when I was starting instead of just an indicator that lost me tons of money.
Always keep an eye on this.
Set up your charts with a custom session. Use 3:00 EST to 11AM EST
The important part is the European close (unofficial). If you notice, yesterday Europe closed shop around 1.5554. Now overnight, there is a gap and price never returned to this level as of yet. Now what does that mean. Well maybe nothing, but Europe accounts for almost half of the volume in Forex so there is likely large orders sitting there. Study your charts, do you see these gaps filling. Not always the same day and if a gap does not fill, it indicates that Europe closed in the correct direction. If the gap doesn't fill this is a strong indication of a continuance in the current direction. Many times the gaps will fill, and reverse in the current direction. The reason they reverse is bigger traders are covering there positions, thankful that they can get out around breakeven. Lots of dynamics at these levels.
Not easy to trade, but you should always be aware. So chances of the current gap filling up to 1.5554 today is not good, but keep your eye on the remainder of the day and into Asia/Europe tonight.
Once a gap has filled, mark it off your list as it is resolved.
Tracking back I am looking at the close on 4/24 at at 1.5874. Hmmmmmm. It did not fill yet.
Something to ponder that is a little different, I wish you good trading.
If we can get any momentum upward....then short covering should begin and this is what really moves markets. Not the buying, but the throwing up of people on the wrong side of the trade.
I keep my bucket handy at all times.
I keep my bucket handy at all times.
- #8,868
- May 8, 2008 8:20am May 8, 2008 8:20am
- | Joined Feb 2008 | Status: Live long and have fun :) | 1,386 Posts
On the path to Enrichment.
- #8,872
- May 8, 2008 8:26am May 8, 2008 8:26am
Not on those long term shorts, just the short term one near 350. Long term shorts in place. That doji on hourly though does look like it's gonna launch this thing into the stratosphere, but to me it all looks like another big boy push to eat our SLs when it comes back down hard and sails waaaay down the next time.
Start Young. Think Big. Stick to It.
- #8,875
- May 8, 2008 9:00am May 8, 2008 9:00am
EURJPY dragging down EUR/USD. Need yen to weaken a bit.
anyway U/J definitely doesn't look like its going to weaken for now. hmmmm.....
Start Young. Think Big. Stick to It.
- #8,879
- May 8, 2008 9:24am May 8, 2008 9:24am
- Joined Apr 2007 | Status: RCMM (Risk Analysis Money Manager) | 2,556 Posts
- #8,880
- May 8, 2008 9:49am May 8, 2008 9:49am
- | Joined Feb 2008 | Status: Live long and have fun :) | 1,386 Posts
On the path to Enrichment.