Good afternoon beautiful people. Let us concentrate on this chart and extract the information we need to trade it.
The analysis should be quite the same for this chart or any other and that includes also the timeframe.
Nmber 1 is the start of the UK session. Price comes down and provides us with a lower low. Once we have this information we try to trade only short as long as we continue to get lower lows and lower highs.
At number 3 we get the retracement and we think to introduce our short trade. The trigger can be a 5/8 MA cross.
The market continues its bearish move and takes price lower to number 4.
The market then consolidates for a while and it is at number 5 that we get a more decisive bearish cross of MACD.
Price takes out number 4 and proceeds to a lower low at number 6.
Then we are given two bearish 5/8 crosses near number 6 but without MACD crossing the signal line which is a bullish sign.
It becomes then evident that a double bottom forms oatthe psyche level or round number of 1.12000.
Price pierces the cloud and takes out the previous swing high. Once this occurs we remain bullish and wait for a retracement to enter.
The retracement is provided with yet another double bottom from the Daily Central Pivot and the cloud is pierced once again to confirm our bullish bias.
At number 9 which is the end of the UK session it would be recommended to take profits.
BEST OF PIPS