EURO - Momentum

Just a quick follow up from an hour ago. We got our new bar on the 120-minute chart of the EURO, and sure enough, our momentum has INCREASED from that of the previous swing.

While we are still divergent from the Oscillator move in what is currently shown as Wave 3, looking at the MOB from the 3 low shows that we broke through that level, and later used it as RESISTANCE instead of support for this recent move down. We could see the same sort of behavior with the current MOB if it is broken.

 

Be Prepared!

nate 

Comments

[Peter]

Hello,

Looking at a weekly on the FXE, the ETF for the Euro, it seems to indicate a potential Stoch trade to go long. My channel has a Pearson's = 0.95 and we have bounced off a 0.618 fib line. This looks to have great risk/reward and if the pattern continues, we should also get an additional divergence in the Osc as we close above the channel.

I'd attach my chart but not sure how thats done just yet.

Would love any comments.

[Ainsley]

This one worked out real nice, by the numbers and to the GET rules, it really does not get better than this sort of trade, I collected quite a few points

[Peter]

Looks like we got a pair of setups on the weekly again.

Stochs in a channel with Pearsons = .0956 but at bottom of channel ... and I think thats a good thing cause... If you bring up the Oscillator, you'll see the standard Type II divergence setup with a Wave 5 ... but the wave 5 has not yet exceeded wave 3 so I think we still need the Euro to fall some before the Type II setup completes.

However ... that Wave 4 does not exactly have an impressive retracement in the oscillator. Soooo ... flippin to the daily you'll see an excellent Wave 4 but the Wave 5 oscillator has gone beyond the Wave 3 oscillator value. I think this is one of those "Art" type of setups ... the Euro is so shorted and hated plus the headlines have made for great volitility ... if it holds the Wave 3 weekly low, that may mark a good entry trigger. Not clean but something to consider.

Note the MOB you get on the weekly from that minor pivot in April 09. Its right at the current price action. The P and I pivots that preceed also provide some interesting references given the current wave relations on the weekly.