Wednesday 7th November

by 10:59 0 comments
I annotated this 1hr chart at the live edge yesterday morning. It was definitely weakness we were seeing at that hourly high!

 EUR/USD 1hr

The green zone is taken from the NFP bar from last Friday. High volume, wide spread. NFP is nearly always an area of note that will be tested time and time again. This was also the case yesterday. Obama was voted back in so this was the first spike in volume at around 4am my time, not how all of the following bars fail to close above the 50% of this NFP zone. The next spike is the reaction and drive down on high volume. This wasn't strength as the next few bar was down.

After this had established, I knew I was looking for shorts. So I drilled down to some other time frames, 15 and 5min as usual.

EUR/USD 15min

I hate to bang an old drum, but I couldn't find an entry I liked. I've been wondering more and more whether i'm too picky. After this, I think that's the case.

We had the start of the set up on the hourly as I pointed out above.

Moving down to a 15min chart we have a nice volume spike around the time of the election announcement, this served as the zone which controlled the rest of the day. There was no entry on this chart as far as i'm concerned.

EUR/USD 5min

On to the 5min chart we get a nice little No Demand. As I said on the chart, the only reason I didn't take it was because it closed above the 50% area. I feel I need to start treating the high, low and 50% as zones, not definite lines in the sand. An allowance of a few pips either side perhaps. I've said this before but really need to drill it into myself now.

Something like the following;

 EUR/USD 5min Zones

Anyway, it has been a much better week with regards to reading the charts. Despite the small loss the other day i'm feeling a lot better about it all and certainly feeling like i'm in a better place.



28. Forex. Trading. Music. Beer. Food. Travel.


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