In Trading Strategy Examples: Quick Charts

As I work on more longer term stuff for this site, just some of the obvious rearing its head my way these days – this one on EUR/USD. Enough time has passed to say that this base is significant now (less “V” top risk) and likely act as support on the way lower.

Top line usually gets used first, though not always. Given the scenario the last time this level was used we bump up the probability scale for that level in particular, if and when this wants to retreat. I have more on the way but after fixing this site I certainly got my hands full. TBC…

eurusd spike support

-Steve

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Showing 4 comments
  • Chris
    Reply

    Hi Steve,

    Where does the top line actually stem from (the consolidation of the spike base itself on a lower timeframe or the consolidation from 3rd Oct)?

    And I know TA isn’t a to-the-pip-science but is there a reason why you haven’t drawn the bottom line exactly at the spike base at 1.36157? Thanks.

    • Steve W.
      Reply

      Hi Chris, right – consolidation of the spike – and in the heaviest area of it. In other words, below the opens and closes or just below the wick.

  • Walt Toovey
    Reply

    Hi Steve
    Now that the pair has spiked higher in a similar fashion, do you still give the level the same consideration when price returns to the level you identified?

    Thanks for the great site and your insight!

    Walt

    • Steve W.
      Reply

      Hey Walt – apologies for not getting back to you sooner. Spike bases are local support only. So the short answer is no, as its now obvious, and in fact I even wrote up an article about this as well – this area in general and what happened afterwards. Local support is going to vary. Long term is another story. I’m posting that up here today or tomorrow.

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