EURUSD report for swing/day trades #12
What a bloody mess as EURUSD range bound
Recall that ColonelKinkSAR™ method is based identification of confluence explained here.
Technical Analysis states that previous turning points offer future potential support resistance zones.
- Attach a horizontal line at each turning point in the past 12 months on weekly chart. Go to line chart to see clearer picture.
- These lines leave a shadow.
- Shadows are not evenly dispersed but tend to be clustered.
- When multiple shadows confluence in a tight range, there is a dark shadow which will provide strong support resistance.
- Look for dark shadow to offer next turning point.
- Price will move quickly through empty spaces or bright areas.
When multiple lines or shadows fall in a tight cluster there is a confluence. This confluence makes that cluster good support resistance.
In this first chart the good Colonel used line chart to show how the lines are arrived based on turning points available in the last 12 months. See how various lines converge in 1.17 and 1.18 regions. Paint place where lines converge so that shadow shows up prominently.
In this next chart revert back to candlesticks to see how the last 9 weeks going on 10 now fits inside two prominent shadows.
Analysis for swing traders
Now Colonel Kink files his report. Swing trade is still in favour of looking at short since this is continuation April-May movement. But there is no logic for swing trade since EURUSD was stuck since 9 weeks. It could carry on getting stuck since we can recall what happened between January and March.
Analysis for day traders
For day traders, this is the time for range trading strategy to remain inside range. Apply short term indicators according to personal preference.