Questions from Students (Week 17)

This week we have some questions on EURUSD from our community.

Question from Andy:

Referring to the blog on EURUSD, I have another 1234 count. I attached my chart for your reference.

My reasons for this count:

1) Big picture flow is still down, no reversal seen, but who knows, weird things happened in forex, just like WTI. Nevertheless, fundamentals for the euro zone is still poor.

2) Draw a Fib down (1.10344 – 1.05206) in H4, we see point 2 at Fib 38.2 resisted to the downside.

3) Point 2 is a former support turn resistance line.

4) Point 4 resisted by Fib 61.8

My action plan:
1) To wait for H4 candle close below point 2 ( 1.07091)

2) Better if 13TL is broken.

EURUSD H4 20042015


Reply from Tionghum

Based on the attached chart, 1-2-3-4 is a valid but not a good setup.

When point 4 is reasonably far from 2, point 2 risks becoming a support. In addition, it would be difficult to place SL which will be quite big.

Please see my feedback at this post to a previous question of your nature. Inside also what I think should be a good trigger.

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3 thoughts on “Questions from Students (Week 17)”

  1. Benedict Boo says:

    When point 4 is reasonably far from 2, point 2 risks becoming a support.

    Hey Mr Soh, when reading your posts, seem like there is a recurring theme. When you are looking to trade in 1 direction (in this case, short), you are also constantly looking out where the opposing party might look to place its entry as well (in this case, long). Thanks for the reminder!

    1. Soh Tiong Hum says:

      Hi Benedict. You are welcome. Current setup of AUDUSD on daily chart is a good example. AUDUSD daily chart

  2. Benedict Boo says:

    Hey Mr Soh, looking at the above AUDUSD daily chart, if you could allow, would like to add in something. The statement “When point 4 is reasonably far from 2, point 2 risks becoming a support” is even more likely to hold true when pt 4 is preceded by a strong upflow (in this case of AUDUSD, the upflow before pt 4 consists of only white candles and no red candles). The bullish upflow probably leads a trader to see the price movement after pt 4 to be simply a retracement for him/her to enter the market and the price level of pt 2 would be one possible buy entry given that it is a recent swing high. Thanks!

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