On the EURUSD I was just doing my analysis, and then I noticed something. This technique is sort of based on an AB=CD pattern. We have the blue bullish move and the red bearish move. They are almost equal in size. The blue is 540 pips and the rest is 515 pips. Many times when price has moved this amount of pips, price reversed or made a correction. And this reversal was almost down right to the pip.
Based on this theory, it could very well be that price is going to make a bullish move towards the 1.08800 area.
Thanks for reading :)!
Komen
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Look at where price reversed from at the end of March. That was perfect :)
interesting concept. how far did you backtest to get this idea? do you think it is a sell on rally?
11021992
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@dchua1969, Well, it is a known fact that price-action is based on repetitive movement. You can check out any pair, any timeframe and you will see the same thing. I haven't actually used this for trading nor backtesting, but I do use the AB=CD pattern, which is very profitable and easy to spot.