Pivots + RSX + Stochastic on M15 & M30 - Intraday rangebound

Hey Jonas

Oh I thought the questions were straightforward but I'm happy to re-phrase !

Q1 Can RSX be used in the same way as RSI to see Regular Bullish and Bearish divergence ?

Tarantula has a theory that with RSI when the value ranges between 80 and 40 we are in Bull territory. When the Bull Phase ends and it shifts to Bear Phase RSI ranges between 60 and 20.

Okay so given that RSX is a smoothed version of RSI do you think same guidelines could apply ?

As to EURUSD we've just had a 5 wave move up from 1.4012 to 1.4535. Typically these are followed by ABC correction. Yesterdays leg was A a rather sharp move following more negative comments from German finance minister set the tone for the day then further risk off due to helpful US Debt issues.

Weekly R1 capped the rise at 1.4525 This is why I think pivots are v important especially to Intra Day Traders. Of course if you are playing off H4 then not so much but quite a few on here seem to use 15 min charts in which case I would say they are essential.

Overall I really like the tone of this thread lots of PA analysis based on Supply and Demand zones with just a couple of indicators for confirmation. That is the important point .. confirmation !

Good trading day to all


V

Let's keep an eye on that gbp usd chart 4h, we don't want to miss a possible long there like we missed that incredible short two days ago... I'm still mourning over it.



edit: at the bottom of the second box we have fibs support aswell

usd cad 4h may become oversold soon with close supply area and 23.6 fibs

Hi Dorobantu

Run your fib from the 1.6004 low and you'll see something even clearer at 23.6 and 38.2

As in Eur clear 5 wave move up so ABC correction would be typical yesterday was leg A

Best regards


V

You're right, but from my previous fibs experience I think that using various HL - LH - HH - LL can give a good view upon where support and resistance levels are.

Where can I read about the ABC correction you're talking about?

Hey Doro

High probability trading strategies by Robert Miner covers this in some detail. Also do a search for Elliott Wave analysis online it will be on there as well.

Cheers


V

Thank you V

morning...

morning Phanti

Eur Usd

Yes....but thats not the system discussed in here, is it? : p

Hey Guys

Clear illustration there how Demand zones don't last forever ! Was about 6 visits to "the well" before it evaporated. Every visit soaks up some of the demand.

Would now expect a re-test of both the DZ and the recently broken uptrend support line. This is now leg C of the ABC correction.

Best to all


V

I guess yes. Never thought about it so far, would like to see some setups/charts from you

btw drag a rsi indie to the tpl in addition and compare it with rsx, quiet similar.

Hi Jonas

Here's a chart as requested.Some may argue over the exact points of the 5 wave move up but the ABC type correction is fairly clear. Typically leg C is either 100% of A leg or 61.8 of A

61.8 is right in the previous supply now possibly demand zone.
100% is around the dark blue horiz line near the daily S2 pivot.

Now the really interesting bit is what happens when leg C is finished. If it trades back into area of leg A in a typical overlap then all the conditions have been met for a typical ABC correction. If we then see a break above leg B then I would expect a new 5 wave up with the move from C as the 1st leg of the new move up.

Different way of looking at things but takes into account market structure and DZ and SZs.


Regards


V

aud cad buy limit @ 1.0445, bottom of demand area, oversold rsx + short term 50.0 fibs retracement

Pending long 4h eur gbp @ s2, bottom of demand area. Rsx not yet oversold but will be if order is hit soon.

Hi Doro

I think that is a good play. As well as demand the Weekly S1 is at 0.8722 and should provide additional support. That's if it gets there of course !

Regards,


V

@dorobantu thanks for the charts...all of them looking beautiful

i am looking also for EUR/GBP reverse in this area, i think this could be a really huge one

indeed looking great, especially EUR/CHF

I changed my mind about eur/gbp i'll not take it anymore, I'll wait for a lower level on it.
I like this one better instead


let's see how it goes