The Gartley Chart pattern
Euro US Dollar Trading Strategies
Euro Us Dollar
Market continued its current downtrend in today's European session after the termination of the consolidation pattern on the hourly chart, which consists of the typical three swings. The EURO made a fresh new low at the 61.80 % fib extension from the recent daily swing down and market created a kind of hammer pattern, leading to a new consolidation.
On the 5 min chart we see that the weekly pivot, the 200 SMA and particularly the low of September 10th, which changed from a support to a resistance level due to the recent breach, provided resistance throughout the trading session. The red arrows show the stop clearing/ stop fishing, where market only temporarily broke important pivot points to clear the stops before reversing.
The green ellipses/ circles show consolidation patterns. On the 5 min chart there were two interesting consolidation patterns, a bull and a bear flag. The orange arrows show that the price zone of the consolidation patterns often provide some support/resistance when price moves back into this zone for the first time. Furthermore, fibonacci levels helped to find potential reversing points.
|Daily Gartley Chart pattern|
|1 hour Euro US Dollar trading strategies|
|5 min Euro US Dollar trading strategies|