Trading the Gap Close
Monthly Pivot Trading
|4 hour Timing Trading Strategies|
|Daily Monthly Pivot Point|
Trading market Gaps in Forex
The Euro opened with a market gap to 1.2624, which is the resistance zone of the 61.80 % fib retracement and the low of January 2012 (orange line) (EUR/USD Market Recap 07.06.12).
Market moved above this resistance (second test) but could not overcome the monthly pivot point at 1.2661. From there, the Euro bounced back and in the following EUR/USD (Forex) closed the gap from today.
On the 4 hour chart we see that the 4-hour candle closing at 12 a.m. GMT respected (closed at) the weekly pivot. Initially after the 4 hour candle closed market breached the weekly pivot point and EUR/USD formed a typical 3-wave consolidation pattern (5 min chart) below the weekly pivot before market resumed its down trend to close today's gap (Gap Trading).
|1 hour Gap Trading|
On the 1-hour chart we see that the Euro also closed at (respected) the daily pivot with the 3 p.m. candle before market initially breached the daily pivot point in the beginning of the next hourly candle.
Forex Market currently found some support at the daily 10 SMA.