This applies mainly to forex pairs and commodities. Stocks it's going to be hard on the low volumes, I think. I haven't tried this.Not the easiest to find on this pair, but I've concluded there are three. One clear characteristic of this pair is that lines which mark pivot points can easily become Median Lines. There seem to be two more active and a much steeper uptrending 'background' line which comes into effect every so often ( in fact it's just traded up it these past few months). You can see it above 1 where the pair channels up it, again at 2 and it reoccurs in effect twice on the drop this year above 3. The less steeply upward inclined line joins three pivots around 4 (one overshoot, but it's still there), and then the recent top taps it perfectly.
Obviously this is not the be all and end all of behaviour but I think the pair will ALWAYS gravitate to an expression of them. Not being a huge subscriber to horizontal analysis, to me these repeating lines are the nearest thing to a Holy Grail :) Clearly it did a classic channel change/breakout at the end of last year, and even though it's in a new area these lines are in effect. This isn't detailed enough to see but I think it may well have already begun to delineate a set course for a long term downward channel, (though that is very dependant on JGB rates, not looking great at the mo). I do think it's close to crux point, (as across many markets). All I would say is, for the longer hours and daily, Bulls, certainly for this week trade with extreme caution.
Generally, will everything be normal by the end of this week? I don't think so!
Obviously this is not the be all and end all of behaviour but I think the pair will ALWAYS gravitate to an expression of them. Not being a huge subscriber to horizontal analysis, to me these repeating lines are the nearest thing to a Holy Grail :) Clearly it did a classic channel change/breakout at the end of last year, and even though it's in a new area these lines are in effect. This isn't detailed enough to see but I think it may well have already begun to delineate a set course for a long term downward channel, (though that is very dependant on JGB rates, not looking great at the mo). I do think it's close to crux point, (as across many markets). All I would say is, for the longer hours and daily, Bulls, certainly for this week trade with extreme caution.
Generally, will everything be normal by the end of this week? I don't think so!
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.