EURUSD had a deep correction last week and the pair now trades near the EMA50 on the daily chart which is jsut above the 1.4282 swing hihg in last October. The pair should find some support here so I’m looking for a bullish setup on the intraday timeframes.
Tag Archives: EMA
The EURGBP formed a Barb Wire formation on the 1h timeframe after a pullback from the 4h channel resistance. I prefer the upside from here based on my note posted on 2010/12/06.
Barb Wire pattern, by Al Brooks, is a tight trading range near the EMA with small body bars that “largely overlap and one or more of them have a tiny body (doji)”. Sideways bars with overlap mean that neither the bulls nor the bears are in control. Even though “odds favor a With Trend breakout” the Barb Wire pattern “is notorious for sharp whipsaws and repeated losses for breakout traders”. Quotes from Al Brooks’ book, see my Bookshelf page for reference.