This is today's Current Positions Table for the EURUSD. In an effort to help our audience with its interpretation, we inserted all the current positions in a price chart. On the left the left the buy and on the right the sell positions. Look for those areas where the positions are more clustered. For example, the 1.3160 area has a few stops from sellers, but also buy positions aiming to bring the price higher.…Continue
Those familiar with my work may know my predilection for classical yet less kown indicators and techniques.
The below chart is an example of a breadth indicator normally used for stocks: the Bullish Percentage Index. At FXstreet.com we build the same indicator for the Forex market based on a proprietary formula. The below EUR-BPI measures the percentage of euro-based pairs which are printing a bullish signal on Point and Figure charts. A rising line means that more euro-based pairs…Continue
Someone asked during the webinar if the technique can be used in shorter time-frames. Here is a beautiful example on a 60 minute chart.
Notice how all trendline crossovers where known before the price gyrations happened- starting at the green vertical line all moments in time where already on the…Continue
Notice how the targets calculated on this 3-box reversal chart have been, - to the exception of the 106.8 downside target- fulfilled. Interesting also is the confluence among horizontal and vertical counts from several of the columns. The 121 (1.21 in spot terms) area was indeed a strong cluster.
The current ascent can't yet be used to calculate a target to the upside, since the column of x has to be reversed at least by 3 boxes.
As long as the euro is below the 45 red line, the…