EUR/USD 240 min. Swing Set Up

Beginning with the overall look on my quad view offers me the analysis across my favorite tools. I can see where — for example — Pivot support coincides with Wave support and maybe the pressure of a candlestick sell pattern. Notice I also compare each tool on the same time frame.

5-13-2009 9-56-20 AM.gif

So right away I can see and focus in on a few main cues:
1) The Wave is 12-2 and that means I have an uptrend
2) There’s a pullback that’s coming back to Wave support
3) Prices are testing the daily Pivot Point
4) There is a three outside candlestick pattern sell trigger 14 candles back

I am also looking at the Fibonacci Retracement that shows that the 1.3700 level is not only a psychological ceiling but at 1.618 Fibo Extension. It will also be an upside target if the swing follows through.

5-13-2009 9-58-43 AM.gif

The job here is to consider where the support and resistance is on the chart. What I do with the levels is determined by the market cycle. Think about it this way. Most forex traders can identify support and resistance on a chart. It’s what we individually do with those lines and levels that dictate the trade. For far too many traders, the action at support/resistance/trendlines is random or dictated by what we want to do not by what the market is telling us to do…think about it! We’ll talk more of this again.