Euro / U.S. DollarShort
EURUSD ABCD Sell Daily
Hello All,
it has been quite sometime since I posted, in part to my employer putting a proxy block on TradingView. I'm not a full time trader yet as I am still working on my Risk Management skills. But as far as strategy my harmonic stance is pretty evident from my previous posts.
Anyway, I have been saying "BUY" the Euro since June or July of 2020 even though my technicals have been saying sell, but the COT has been saying buy. Now we are seeing something every interesting happening on the COT. Back in June or July we had a massive 20,000 order sell by the Commercials, which opens a lot of liquidity in the market even on the most traded pair in the world. COT traders know to fade the Commercials as they open trades expecting to lose them, so they can hedge their profits. Either way taking it slow, trading wise, after the holidays is a wise idea, as the markets were dry (as always around the holidays). The Open Interest was around 24XX orders and the majority were Large Speculators attempting to drive prices higher.
Now, on the chart we have a simple ABCD pattern. The ABCD Pattern is the very essence of Buy Low and Sell High which is what Scott Carney says in one of his books. So, the ABCD pattern completes in a resistance area that has not been touched since March of 2018. Which happens to be the 1.24XXX area. PA is now entering the Resistance area, so on the lower time frames I would expect to see some crazy charts.
I believe PA will complete the ABCD pattern and then we could see some drop in price. I would only expect to book a .382 profit before PA heads to the upside again. I think the move down will be profit taking and not a true shift in direction.
it has been quite sometime since I posted, in part to my employer putting a proxy block on TradingView. I'm not a full time trader yet as I am still working on my Risk Management skills. But as far as strategy my harmonic stance is pretty evident from my previous posts.
Anyway, I have been saying "BUY" the Euro since June or July of 2020 even though my technicals have been saying sell, but the COT has been saying buy. Now we are seeing something every interesting happening on the COT. Back in June or July we had a massive 20,000 order sell by the Commercials, which opens a lot of liquidity in the market even on the most traded pair in the world. COT traders know to fade the Commercials as they open trades expecting to lose them, so they can hedge their profits. Either way taking it slow, trading wise, after the holidays is a wise idea, as the markets were dry (as always around the holidays). The Open Interest was around 24XX orders and the majority were Large Speculators attempting to drive prices higher.
Now, on the chart we have a simple ABCD pattern. The ABCD Pattern is the very essence of Buy Low and Sell High which is what Scott Carney says in one of his books. So, the ABCD pattern completes in a resistance area that has not been touched since March of 2018. Which happens to be the 1.24XXX area. PA is now entering the Resistance area, so on the lower time frames I would expect to see some crazy charts.
I believe PA will complete the ABCD pattern and then we could see some drop in price. I would only expect to book a .382 profit before PA heads to the upside again. I think the move down will be profit taking and not a true shift in direction.
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