The pattern I am talking about, is a potential Bullish 'Cup and Handle' pattern. - It is worth noting that this is against a contra trend of lower peaks in the EURUSD since 2008 on the weekly, so it has some heavy work ahead of it in order to follow through on the upside, this could contribute to some erratic price action in the weeks ahead.
The chart below shows the Cup and Handle pattern I am referring to.
And here is the longer term weekly chart which shows the uphill battle it faces.
CUP and HANDLE PATTERN.
Some further info on 'Cup and Handle' Pattern. The illustration below shows a typical set-up. Note this is usually a continuation pattern.
The chart below shows an example of a successful 'Cup and Handle' pattern. This is the German 10 Year Yield chart from 2006 - 2007.
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It looks right...but...how about a head & shoulders?....but....maybe the H&S is a continuation pattern...let's wait & see...Jordan
ReplyDeleteHi Jordan.
ReplyDeleteApologies for not replying sooner. A skewed H&S was an option, though I think personally it was too heavily skewed.. In light of yesterday's rally, it is looking a decent possibility, though until I see some strong volume breakout, it could continue to be an optical illusion, which is always the risk in using patterns. I'm not an Elliotist, but plan to see how some of the better EWists currently view this..