In Price Action Trading Strategy

End of month protection = standard at this point and lows were unable to get violated on Wednesday. 4th touch of the last trendline (bottom circle on chart below) failed as momentum swung through; possible entry long, if not long from the end of the Asian session.

Top of the channel was just hit in a strong momentum play past the former 1.2433-1.2445 key level.


Most of the time these stick extremely well, as noted in examples across several posts now, though end of month activity could provide some further upside as key areas remain above, particularly circa the 1.2500 handle. Below are links to recent articles discussing this in further detail.

For the day, EUR has already gained a substantial amount (appx. 170 pips) but with 300 pip days not uncommon lately, shouldn't rule anything out, especially towards the end of the month with so many open gaps above. Regardless, the above is well worth noting.

https://paracurve.com/2010/05/all-about-diagonal-trendlines.html

https://paracurve.com/2010/02/price-symmetry-highs-and-lows-step-by.html

Just some very quick thoughts if you have any other info please feel free to post below.

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Showing 2 comments
  • Christian
    Reply

    Hi Steve,
    what do you mean by the so called end-of-month-protection? That it is unlikely to see new highs/lows the last days of a month?

    Can you refer to an artikel where you explain how you draw your horizontal support and resistance lines? I am just curious because when I look at your charts it seems that in a upmove you look more for recent downswings than for recent highs.

    Thank you! Keep on!
    Chris

  • nobrainertrades
    Reply

    Hi Chris in terms of month end moves it generally refers to portfolio managers rebalancing their books prior to month end. Exposure and asset allocation models are used and based on price activity during the course of the month they seek to reset their allocations back to the starting levels. So when a move is sharp in one particular pair you're likely to see it taper off usually starting around the week prior to month end though it varies of course. Just one of many other factors.

    In terms of examples of drawing lines you could click above on the tab that reads 'strategy/articles' and click on trade examples. Hope this helps,

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