Over the past few days I’ve mentioned the EUR Ledge, a narrow 20 pip price band that’s provided a consistent support and resistance benchmark for the past 3 weeks. At yesterday’s US market close it looked like the LEDGE idea had failed but then (conspiracy buffs pay close attention to the upper chart) on a single 5 minute bar at 19:00 the EUR jumped up to kiss the Ledge at 1.3952 before commencing an 8 hour slide into the EUR Trak setup open at 3:00. Talk about picture perfect!!
Next week, to celebrate the elections, I’ll be focusing on another setup I call “The Knock” as displayed in the lower chart. This is an intraday tactic that uses price position on the EUR Trak linear regression channel to trigger short term (30-90 minute) trades. The Knock is meant to supplement the FXE Open trade and can be used to effectively day trade the FXE assuming you have a FX feed for the EUR/USD to define the EUR Trak channel. We couple the short term EUR Trak cycle with the 8/8 hi/lo channel and parabolics to yield a robust and highly consistent signal. More to follow.
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