We may see the Congruence on Daily, H4 and Hourly Stochastic soon.
Here is the Daily chart.
The price has just bounced from the support zone (and Fibonacci 50%). The Stochastic has crossed and about to go above 25%. (But not yet)
On H4 chart, Stochastic is still in the down cycle. But the price seems to have bounced already from Fib61.8%. So it is fair to assume the stochastic will turn into up cycle soon? (especially in a few hours…)
Here is the Hourly chart.
Stochastic is reaching to the top!! Yes, that’s good! Why? 🙂
We can wait until the down cycle is over, and hopefully the price will drop down to our buy zone (Fib38.2-61.8%).
But we have to wait for another 4-6 hours until the end of down cycle.
So here is the best Scenario.
In 4-6 hours from now…
a) The price may come down to Fib38.2-61.8% (185.20-185.35) zone on Hourly chart, while Stochastic will turn into Up Cycle.
b) H4 Stochastic will be in an Up Cycle
c) Daily Stochastic will go above 25% facing North!
But the most important thing is … 185.20-185.35 are in the Support zone on Daily chart! … and the 2nd important thing is Daily, H4, H1 Stochastic will be all in the UP CYCLE.
The target? That’s your alpha.
If you are trading on Daily chart, Fib 138.2% is 191.80.
If you are trading on H4 chart, Fib 138.2% is 186.64.
If you are trading on H1 chart, Fib 138.2% is 185.80.
Of course, if you want to shoot for Fib168.2%, instead of 138.2%… that’s your alpha too.
Typically things don’t work as expected. But at least, I want to dream of the perfect scenario!
Hope this setup gives you some dreams! 🙂
YJ Baik – Forex.Today @ Tokyo
PS: The price is already in the buy zone now (185.29 – 5AM EST). But still Hourly Stochastic is down. I would still buy this pair from Double bottom on Hourly chart at 185.00 when Stochastic up cycle begins.