Simple, analysis on chart, confluence of contrarian but very powerful bullish signals.
#1: Ending diagonal triangle #2: rgmov divergence #3: Quarterly ROC up #4: Absolutely extreme move down based on the Bollinger bands. #5: Time at mode daily downtrend expiration. #6: CCI oversold but divergent vs previous peaks.
Smart move to buy above a previous bar high. This way you are not "PICKING BOTTOMS" but waiting for the market to prove it is bottoming. Good strategy.
PriceActionTrading
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Indeed.
IvanLabrie
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Closed my long, 0.3% profit here. Waiting for a more conservative confirmed entry.
simpleforextrader
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Just looking at the Fib Sequence on EG on Daily I can see a further decline to its Extension 1.618 zone @ 0.63603 and looking back from july, 2013 it has been pretty much following that trend. Just FYI
njdfj
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Yeah possible. In this case, this will be a leading diagonal (for the final 5th) instead of an ending diagonal. Either way, as long as it's a diagonal, a bounce is very close.
IvanLabrie
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Why leading?
njdfj
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of course less likely, but still cannot completely rule out the chance that this is in fact wave (i) of the final large 5th wave down, so a leading. either case, a bounce is imminent.
IvanLabrie
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Would be a strange ocurrence, but yes, it would imply a very sharp 0.786 retracement if it is, making this idea profitable as well.
Time for completion should be similar to the one I projected in the chart above with fib time and the arrow.
FullTimeTrader
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Hello, you now something about correlation between EURGBP and gold? They are very similar now, im considering the possibility of a false break like gold (expanded flat). The reversal is expected soon.
IvanLabrie
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I think eur, gold and usd will outperform the pound, that's why you see the correlation.