Playing trends is popular but tricky because in order to SWING buy into a trend you must identify:
- the trend itself and how strong it is and…
- where the correction(s) are.
Now I stress SWING because swing buys are taken within an overall uptrend like the one currently seen on the EUR/USD daily chart. While the intraday charts may be heading lower, the daily chart trend is still up and correcting. For me, the different between a correction and reversal in a trend has to do with my 34ema Wave.
Here’s the view of the daily EUR/USD in what I call the market memory, which is one year for the daily time frame.
The view may be overwhelming in the amount of data at first but remember that this view has a very particular job: Identify the trend using the angle of the Wave and identify the last major move for any applicable Fibonacci retracements.
So let’s take a look at what I found:
The EUR/USD intraday weakness has fed right into the Wave and Fibonacci support of the daily. There is also psychological level support between the 1.4800 to 1.4750 major psychological levels.
Here’s yet another view of the Channel Up pattern on this chart: