I started watching the EUR/USD around 2AM EST, and immediately the thing that popped out was the pivot level working as a robust price level. During a 25-minute stretch leading into the open of the European session, the pivot was tested but held pretty well along the line. The retracement back down went about 4-5 […]
August 7, 2014 The GBP/JPY had a big spike up ahead of the European open before once again re-settling below the pivot level of 172.305. Just ahead of the 3AM (EST) hour, price began consolidating into its own channel and by 3:10, a distinct level of support had been created along 172.21. Recently in my […]
Resistance lines are one of the basic tools of technical analysis. They are lines that denote areas where price action is likely to pause, stop or reverse. Why is this? It is because they are areas on a chart or price levels where the market is selling and is said to be resistant to higher […]
In a previous posting I began a series on support and resistance. In that article I laid out two basic rules for support and resistance lines that all traders should follow. These are 1) S/R lines are not a signal, they are places where signals are likely to happen. If this sounds familiar you are […]
August 6, 2014 One of the nice things about pivot points that are spaced far apart is that the market will tend to be sensitive to them to a greater degree. When there is no other obvious immediate intraday level for price to hang on, it makes reaching a pivot point a rather notable event, […]
August 6, 2014 In trading, you can often become your own worst obstacle by usually the following three things: 1. Forcing trades and taking trades that aren’t there. 2. Trading too frequently and only semi-decent set-ups that don’t fulfill the criteria of factors you have set for yourself. 3. Investing too much money on any […]
August 5, 2014 It’s a common theme in my blog to emphasize the importance of avoiding trades around news time. My recommendation is to avoid trading it completely, especially in the context of simple short-term up-down binary options. At many brokers, you may not even be able to get into a trade in the first […]
August 3, 2014 Last Friday’s trading of the EUR/USD didn’t amount to much in the way of trading opportunities setting up at pivot points. Naturally, when the gap between them is large, it carries with it the reality that set-ups along them will be in less abundance. Daily pivot points are truly a favorite method […]
1. The first trading opportunity I encountered was not as easy when it came to making a cut-and-dried decision about if and when to get into the trade. The market broke down below the pivot level during the 2AM (EST) hour, and tested and rejected the level at the onset of the 3AM hour before […]
A bit of a unique set-up occurred when I first began trading, in that it’s not one that comes up frequently. Starting on the 2:10(AM EST) candle, a series of consecutive wicks occurred on each five-minute candle, showing an inability to break this particular price level before the daily pivot. Before the end of the […]