Sunday 28 March 2010

It's getting more complicated..Swissy/J-Yen






Long Term/daily ChfJpy( left) shows in my opinion a current ML set where you can see price oscillating around the plum/violet coloured centre line like a human pulse/heart beat on a hospital monitor. Centre chart shows E-signal 240min chart (as per the Metatrader chart from earlier today)with also the up sloping ML set in red. Finally there is the Ensign windows daily chart (Right) with Reaction lines and a simple Fib retracement from the previous swing high/S low ( plus the same up-sloping ML set/red in e-signal).

In the centre 240 min chart the long term plum coloured daily centre line is exactly where price closed on Friday 26th March, just a fraction below the blue down sloping UMLP. This is an area of confluence and it increases probability that with the plum centre line there that price could stop and reverse at this level. Infact to me this shouts out loudly RESISTANCE as we also have an important Physc level of 87.00! Only a fool would dismiss the possibility of a zoom through the plum centre line as per Andrews laws and also i am not blind that the recent trend is up and we have been making higher-highs and lower lows in this recent move ....but if you look on the daily chart we have actually made one lower swing high and two lower lows and we could be on the downward side of the mountain from the top at 91.55. Then there is the Red up sloping centre line. If price fails to reach the centre line it should accelerate in the opposite direction. OK so that's enough about the ML sets...the problem is how to trade any reversal/change in direction/correction without having to put a stop so far above the market that you could drive a bus through the stop level and short entry point.
Now look at the close up from the 60min chart from Friday below. Price has already touched the Plum centre line/Blue UMLP at the point of confluence (87.00) and as the market closed at 86.81. A restest? Perhaps.........More to come on Asian market opening





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