A-B-C-D Trade - page 5

[fxisland]

Fib Channel - Pull from 1 to 2, and drag 2nd line to first expansion (3).

Fib Arc - Drag from A to B, as that was the high and low. Align over high at 3.

(Once market made another high, we can move the Fib Arc to align with the new high)

Fib Retracement - Pull from 2 to 1. This provides retrace levels.

This was all done at the time of Point 3. Everything to the right is the future and you have some support and resistance. These S/R levels can assist you in exiting a trade, etc.

[fxisland]

We can use the Fibonacci Fans on any time-frame, but this is on EUR/USD Daily.

Drag Fib Fan from A to B

Fib Extension drag from A to B, and pinpoint 2nd line on C (the retracement). You can see recent action hit the FE 100.

Also on chart is the Ichimoku.

• EUR/USD is trading below the "clouds", which denotes down trend.
• The edges of the clouds are used as support & resistance.
• The clouds are projected a little into the future. Ichimoku experts often use that to project continuance of a trend, and/or future support & resistance areas.
• If the market is trading inside the clouds, it is considered non-trend.
• The red line crossing the blue line downward is the trigger to enter sell direction.
• The lime color line lags behind current price. If it is below the price candles, it denotes downtrend. If it's above candles, it denotes uptrend.There's more info on the Ichimoku on the internet, that is too detailed for the purpose of this thread.

[fxisland]

EUR/USD testing previous session low of 1.2615. Looking for more recent ABC, but looks like previous still intact. Will post chat with that later if I have to press the button.

[fxisland]

EUR/USD testing low of 1.2615. It is at the FE 100 of a micro-ABCD pattern, which is also illustrated on attached 5-min chart.

The previous large ABC pattern may very likely still be in play. That projects FE100 at 1.2577.

Just broke....

Edit: 04:55 GMT --- bounced off micro-ABC FE 161.8

Waiting for confirmation on reattempt to puncture through.

Footnote: the SuperSR7 appeared prior and is now acting as support at 1.2605.

[fxisland]

If Point C holds:

A = 1.2641

B = 1.2605

C = 1.2626 (tentative)

FE 100 = 1.2590

FE 161.8 = 1.2568

Edited Point A

If Asia stays in this tight range, should be good opportunity for London Breakout

[fxisland]

C did NOT hold, wait to redraw C if it comes back down.

Edit: This ABC will not happen. Now at 1.2639.

[fxisland]

The Asian session saw the start of a spectacular rise in EUR/USD.

Draw the fib retracement from 1.2605 (1) to 1.2738 (2)(A). This was the "Move".

• You will then see the retracement fib levels.
• The move retraced back down to the 61.8% fib level 1.2655 (3)(B).
• That leg retraced to the 61.8 fib level of 1.2709(4) (C)Now draw, with the Fib Extension (Expansion) tool from A to B, then move the 2nd line to C.
• The fib extension has recently hit the FE 100 of 1.2626-------
FE 100 = 1.2632

[fxisland]

EUR/USD attempting to make a full retrace of the Asian Move. It has broken the 78.6% retrace level. It is working on an ABCD pattern and stalled at the FE 61.8 of 1.2615

Next levels:

FE 100 = 1.2591

FE 127 = 1.2573

FE 161.8 = 1.2550

Strong Support at 1.2605

[fxisland]

New ABC pattern forming.

A = 1.2658

B = 1.2617

C = 1.2638 (if it holds)

FE 100 = 1.2597

FE 127 = 1.2586

FE 161.8 =1.2572

For myself the distance from A-B is small enough for me to look to take profit a the FE 161.8 level.

However, the support at 1.2605 is strong. If entry is made below this.

Stop-loss using 1-min pivot needs to be determined.

If we go with the strong support of 1.2605, since if broken, turns into resistance, add minimum 4 pips = 1.2609 stop-loss.

If entry = 1.2596 (below the FE 100)

Risk = 13 pips
Reward = 24 pips

[fxisland]

New York set to close in about 45 minutes. Let's see if we have enough steam to break these levels. EUR/USD now at 1.2620