One note on the little breakout that was short-lived because
of the week coming to a close. 70+ pips is nothing and could
have occurred off of a much smaller tf such as the 1M or the
5M. Significantly we saw compressions pattern that formed
simultaneously on three consecutive tf's (15M, 30M and 1H).
The EMAs were all stacked upon each other within 3-4 pips...
I'm talking about from all of the moving average periods widely
spread between 6EMA and 144EMA. With that big of a EMA range
displayed, that's very unusual. For those using only 2 or three
EMAs in their charting... roll-over patterns occur all the time
showing a high and a low MA cross on top of each other but this
entirely different. Using multiple tfs and multple MAs usually
you'll only have one or two tfs that join in concert to lend their
energies to the move but seldom consecutive tfs. This suggests
a move with a stronger potential and momentum if it continues
down. Don't expect the GU to ever be so cooperative.
If we had more session at the trader's disposal this could have
continued after a little pause and pull back following the ~70+
pips move off of the point of compression which was around
1.5900 to finally close at 1.5859 which now is allowing the 5m
to gather and converge. This continuation could easily occur
in the next session triggering another wave downward to keep
the breakout alive.
Here's a few charts to illustrate. Note the pin point clustering
of EMAs on each chart that initiated the move.
We'll see if this can continue down in waves off of the lower tfs
without weakening the continuous move of the higher such as
the 1H. The 4H EMAs are 'out of phase' and extended showing
a 'bubble' separation but this necessary pull-back / retracement
can lend its energies to the lower tfs downward effort. Should
the momentum build it will pull the 4H and the daily is slightly
out of phase in a first wave up pattern off of a loose compression.
Just my views.
Dr. D.
of the week coming to a close. 70+ pips is nothing and could
have occurred off of a much smaller tf such as the 1M or the
5M. Significantly we saw compressions pattern that formed
simultaneously on three consecutive tf's (15M, 30M and 1H).
The EMAs were all stacked upon each other within 3-4 pips...
I'm talking about from all of the moving average periods widely
spread between 6EMA and 144EMA. With that big of a EMA range
displayed, that's very unusual. For those using only 2 or three
EMAs in their charting... roll-over patterns occur all the time
showing a high and a low MA cross on top of each other but this
entirely different. Using multiple tfs and multple MAs usually
you'll only have one or two tfs that join in concert to lend their
energies to the move but seldom consecutive tfs. This suggests
a move with a stronger potential and momentum if it continues
down. Don't expect the GU to ever be so cooperative.
If we had more session at the trader's disposal this could have
continued after a little pause and pull back following the ~70+
pips move off of the point of compression which was around
1.5900 to finally close at 1.5859 which now is allowing the 5m
to gather and converge. This continuation could easily occur
in the next session triggering another wave downward to keep
the breakout alive.
Here's a few charts to illustrate. Note the pin point clustering
of EMAs on each chart that initiated the move.
We'll see if this can continue down in waves off of the lower tfs
without weakening the continuous move of the higher such as
the 1H. The 4H EMAs are 'out of phase' and extended showing
a 'bubble' separation but this necessary pull-back / retracement
can lend its energies to the lower tfs downward effort. Should
the momentum build it will pull the 4H and the daily is slightly
out of phase in a first wave up pattern off of a loose compression.
Just my views.
Dr. D.
Attached Images
