Astute readers have noted the addition of a MACD signal to the dbFX platform template. In the upper chart I’ve highlighted the crossovers and the resultant price action follow through. These are fairly impressive confirmation signals just using the default 12-26-9 settings. Next week I’ll show some “improved” settings that are more tuned to the EUR, which has its own unique pulse and tempo.
Also of note is the dynamic linear regression channel which has been reset to 24 (LR24) lieu of the previous 30. On 5 minute bars this reflects a 2 hour analysis period and tends to be more in sync with the EUR pulse. Using the KNOCK tactics in conjunction with the LR24 is one variation of the TRAK Knock that yields a consistent 80% success rate. These are short term trades . . typically 20 minutes or less and the example (white circle) was only 8 minutes long yielding 9.5 pips. Price had crossed the mean in an uptrend so this was a good odds setup with the parabolics, 8/8, LR7/14 and MACD all bullish.
The lower chart is today’s overnight action and the unusual situation here is the unrelenting downslope from the Dipper onset (9:00) to the US open, which then saw price plunge below the OL line. This grim pattern has pulled EUR back to 134.00 and, keeping in mind the EUR/USD tendency to “stick” to whole numbers, may provide some short term support.
Related posts:
