Eurcad Opp?

[ownshook]

Neal -

Looking at the EURCAD, I see the weekly is down, daily is down and four hour is up after a bounce at a previous support level. Please let me know if you concur with the following:

Short rally if reaches SK @ 1.5530 area - Lower time frames 1hr and less due to previous low below.

Shorting area if price breaks low at 1.5270 area

http://img299.imageshack.us/img299/4016/eurocadtr4.jpg (http://imageshack.us)

[FibMaster]

Hey you're good! Where did you learn this stuff?

[FibMaster]

Neal -

Short rally if reaches SK @ 1.5530 area - Lower time frames 1hr and less due to previous low below.



Yes. Shorting is only if there is a change to down-trend on the 4-hour, or maybe 1 hour (more aggressive and risky).

If the rally is too strong (no cross down in trend), then the next higher SK resistance for possible entries is approx 5540, and above that is 5650 which is also appropriate.

Above 5540, shorting is less attractive (down-trend will be losing momentum if it rallies that high), and above 5700 shorting is discouraged.

Damn, good spotting, I'll include it in today's updates.

FYI, I'm setting course for home port tomorrow. Will sail a few days, should be back by Sunday, maybe Monday into my boat slip.

[ownshook]

Hey you're good! Where did you learn this stuff?

....hours upon hours of watching some guys training videos and going back over video updates making sense of moves that have happened. When you get a moment....check out http://fibmaster.com/. He will even give you a free lesson on trading breakouts :p

[FibMaster]

Hey, you're smooth!

I apologize for giving credit to the wrong person in the daily update, for that chart/trade of yours.

Keep up the good work!

[Michael]

hello Fibmaster,

I don't know where to post this question but just wanna know are you on holiday because i didn't receive daily updates for monday and tuesday.

[FibMaster]

hello Fibmaster,

I don't know where to post this question but just wanna know are you on holiday because i didn't receive daily updates for monday and tuesday.

Hi Michael,

Yes it was a holiday here yesterday. I tried to get some charts out despite it being a holiday, but technical issues got in the way. I have problems with my internet connection, so tried until I had to quit in frustration.

The technical problems are mostly resolved now. So I am working on today's charts right now.

[FibMaster]

And above 5700 shorting is discouraged.


The 57 level looks more and more likely. Could be a good short in that area, but only if a down-move is confirmed (no early entries!)...

Unfortunately this has become a significant rally, so the prior momentum is eroding. However, a substantial rally makes for more (profitable) room to the downside support if the chart wants to return there.

Bullish above 57, so the whole picture changes up there.

[FibMaster]

It turned down sooner than I expected. Were you able to get short?

[ownshook]

It turned down sooner than I expected. Were you able to get short?

The problem with this chart for me was it broke above my sk level. I then looked back over my notes from "Profiting from Fib Levels" so I did not take the first trsi cross. I waited for a retest of the sk resistance level.

Dropped to a one hour....found my entry on one hour @ 1.5530...set my target via extensions.....took the 100% target @ 1.5390 for 140 pips with a set stop above sk and the lower swing high at 1.5565. I used the four hour for the cross and the one hour for entry and target. Picture below is one hour.

Let me know please if this makes sense or if you have any comments about how I read the sk break. Yes it ended in profit but I would much rather profit from proper trading as opposed to just getting lucky with a sloppy setup.


http://img204.imageshack.us/img204/5979/tradeob8.jpg (http://imageshack.us)

[Lifesong]

Hi Fibmaster

In your dailyupdate of Wednesday Sep 3rd, you referred to the fact that the daily TRSI has not crossed down and that around the 1.5180 level, on daily chart, we find some SK support. I support your view that the bears should watch this as the optimal target, but I'm concerned that today's ECB announcement could provide the impetus for clarification of the longer term direction.

[Michael]

Nice trade Ownshook... Maybe we should have another down move again as mentioned by Fibmaster.
By the way, Fibmaster, when will you be announcing the new chat session for your daily market updates subscribers?

[FibMaster]

Nice trade Ownshook... Maybe we should have another down move again as mentioned by Fibmaster.
By the way, Fibmaster, when will you be announcing the new chat session for your daily market updates subscribers?

Michael,

It may take me another week or two, to settle in after the sailing trip.

Every time I start to think about chat sessions, I stall because there are so many unanswered questions.. You can help me find the answers, see here;

http://www.traderzine.com/forums/showthread.php?p=761

Please post replies about chat to that link above.

[ownshook]

Neal....when you get a moment, please feel free to comment on my post:
http://www.traderzine.com/forums/showpost.php?p=747&postcount=10

[FibMaster]

Let me know please if this makes sense or if you have any comments about how I read the sk break. Yes it ended in profit but I would much rather profit from proper trading as opposed to just getting lucky with a sloppy setup.



I think you handled it very well. Once it broke down below the several swing lows (head and shoulders support) that were collected above the resistance, and the followed through by breaking below resistance, it's fair game for shorting. Rallies after that are fish in a barrel, as long as you apply fib studies for entry/stop/exit and as long as it maintains the lower swing-high-swing low pattern.

Great chart! Thanks for posting it.