At the beginning, let’s go back to the two setups I wrote about in the previous article.
EURJPY H1– in line with the strategy Sell order opened at the crossing of price EMA144 (132.63), it would give until now around + 20p.
EURUSD H1 – the price has crossed the average at 1,1666 level, the opened Sell order at this level would reach now + 60p.
Before we go to the setups that may happen in the new week, let’s look at the ones that have already taken place – which we missed last week …
The price crosses the EMA144 average on November 1st and is heading north with a pretty big boost. The next day returns to the average, where at 1.1637 is the intersection and the possibility to open the order Buy. In case of this setup – the price falls -12 pips and then grows up to + 50pips.
November 3rd – The pair is dynamically crossing the EMA144, and in the same day at noon returns to it from the bottom crossing it slightly. There is a very desirable in this strategy pin bar, whose upper shade indicates the rejection of the average and encourages us to open Sell order. Here the price moved in range from -5 pips to +50 pips.
31.10 / 1.11 – the price breaks the EMA144 with a high momentum and returns to it on 2nd November. In this case, there was no clear signal to Buy (1 pip missing), but this illustrates (as an example) that not always we need such a clear signal to appear. Looking back at history of the pair we can see that earlier this average was very carefully respected by the pair what is our guide that this pair will behave, in line with our expectations ( according with the principles of the EMA144 strategy).
But it is already behind us … and we need to look forward …
What kind of setups may appear in the coming week, and maybe in the early days of the week I present below :
After a strong breakout to the north price is returning to the EMA144… so we can expect a rebound when pair reaches the average according to our strategy.
Price recently respected the EMA144 very precisely as a support ,so we can expect that after such dynamic breaking it on November 2nd when it returns to the average it will continue declines.
The description of the strategy can be found here: http://comparic.com/trading-based-ema-144/