Not seen anyone analyse the behaviour of a pair quite in this way, something I've observed, thought I'd give it a go.
It based on the appearance of the candles, mostly the bodies, because if the way they form blocks. Easy to with this pair because they are both quite 'mechanical' (as opposed to fluid, e.g AUDJPY)
The pair has been travelling down a channel since July '12, so months, mostly along a variant of the channel line & direction A with a bit of direction B.
It's not only the shift across left to right, the channel, scoop like, without dropping to the channel bottom the appearance, direction B becoming dominant, but the appearance or strengthening of direction C.
1st obviously along the pitchfork (I do think channels are 'seeded' before), acting as resistance, then as support right down on 22nd Jan / 31 Jan lows, then as (broken) resistance directly after. That 'broken' is significant, it serves to reinforce a bullish underlying Euro. Whether the lower tine of the fork holds remains to be seen. (Just about, hehe, as writing touched it perfectly). Potentially a inverse H&S type arrangement along direction A?? (bit cautious to enter just now, more than a scalp or two, as one more speech this pm = volatility). Let's see … CB policies??
But on the turn? (It depends largely in how these two pivot around the dollar) It's certainly trying, eventually a potential channel break out. A detection of sea-changes from the way the candles are 'blocking'. A useful precursor to tradable formations.
It based on the appearance of the candles, mostly the bodies, because if the way they form blocks. Easy to with this pair because they are both quite 'mechanical' (as opposed to fluid, e.g AUDJPY)
The pair has been travelling down a channel since July '12, so months, mostly along a variant of the channel line & direction A with a bit of direction B.
It's not only the shift across left to right, the channel, scoop like, without dropping to the channel bottom the appearance, direction B becoming dominant, but the appearance or strengthening of direction C.
1st obviously along the pitchfork (I do think channels are 'seeded' before), acting as resistance, then as support right down on 22nd Jan / 31 Jan lows, then as (broken) resistance directly after. That 'broken' is significant, it serves to reinforce a bullish underlying Euro. Whether the lower tine of the fork holds remains to be seen. (Just about, hehe, as writing touched it perfectly). Potentially a inverse H&S type arrangement along direction A?? (bit cautious to enter just now, more than a scalp or two, as one more speech this pm = volatility). Let's see … CB policies??
But on the turn? (It depends largely in how these two pivot around the dollar) It's certainly trying, eventually a potential channel break out. A detection of sea-changes from the way the candles are 'blocking'. A useful precursor to tradable formations.