Cable Update (GBPUSD)
{quote} Lol probably did, was too focused on the massive 3 pip range
...How do I proceed? First, with fans of Gann I build dynamic levels of support and resistance. Second, using the rule for all angles, as algorithm for price movement in support and resistance. I hope you have already noticed how each market situation I (Gann) converted into standard situation. Which has a solution. Which is statistically verified. This solution I describe as "normal". The market does not always comply with the normal solution. But more often we have a solution...
{quote} ... All right. To try to analysis. First about the cable. The cable is in UpTrend. 354 pips in 13 days. Three swings. The last swing was 264 pips in 4 days. Last bar on a daily chart has a lower top and lower bottom. On the rules for two day swing chart that is only Neutral Slope. To note the start of the Down Swing need another bar with a lower bottom and lower top. This will mean a trend reversal (swing). New Trend Down will occur only when the price fell below 6554. {image} There is a table of probabilities. Probability of reversal is...
http://tradinglib.com/indicators/murrey-math
The levels of the chart are derived by these rules. Everything is set in the indicator. To obtain the chart, I think that's enough. More important is what we see on the chart?
First, on 04.04.2014 the minimum was 3672. This coincides with the zero level of MurreyMath. We can accept that level to start the square of Gann. Above it there are 8 lines (total 9), and 8 intervals of 122 pips. Built are the main diagonals, and other lines in the square.
Second Most generally expectations are the price to move on the main diagonal.
The conclusion that we can do that right now the price is able to reach the level of 4648. For this is enough the main diagonal to support the price.
On Friday, at a low liquidity market, the price closed below the main diagonal. Does this loss of support?
...For the euro I do another chart. Two days Swing chart. On this chart can be searched any dependencies or performing repeat swings. {image} The probability of reversal is 60%. In other words, the probability of the repetition of the sequence 1-2-3 swings is 60%. ...
{quote} Love Easter eh... this thing looks way overblown with RSI divergences everywhere on the daily. weekly RSI hasn't been this high since 2007 highs and lower TF PA is wanting me to short. I am wondering about a retest of 1.65 support before another leg up to 1.6890-1.69 area. happy hunting
I see this as a long, it may start a long term up trend akin to the usdjpy. Its the strongest economy in the western world. A strong pound wont affect the economy as much due to the fact that it imports more than it exports and what it exports are not raw materials tied closer to valuation. It is mainly a serviced based economy, with financials playing a major role. I think they are going to be like pigs in shit basically with a strong pound, the rest of the world mostly being the shit. {image} Long term 2.00 would not surprise me in the least....
