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Sunday, May 30, 2010 9:25:21 AM
Quad Tunnel Charting Part2
In this part I will discuss the EMA(400)..The 400 dose not come into play very often...I use it as expected support/resistance on excessive market moves.IOW if its fairly close to the Quad Tunnel its really not seriously in play.You will find that each individual pair has to be studied because..unlike the tunnel and EMA(62) it is respected by some pairs and somewhat ignored by others...on most pairs tho if an excessive move takes place the stopping point is usually the EMA(400).
Another thing about the 400 is finding the dominant time frame(s) in which it exhibits true support/resistance.In trading GBP/USD last friday I did quite well scalping it on 1 miute and/or 5 minute charts.I will post several charts on this pair showing some of the things I mentioned especially in finding a pairs dominant time frame where EMA(400) is concerned and in play.
GBP/USD and AUD/USD are a couple of pairs that seem to have fairly good respect for EMA(400) but the 400 is always a bit hit and miss unless a dominant time frame can be found..I always expect the 400 to stop or stop and reverse oversold/overbought intraday moves on GBP/USD but the nature of overboard momentum moves makes it less reliable than the tunnel and EMA(62)..these moves are that are caused by irrational excitement on news usually do not provide exact points of reversals or stopping points so that must be considered in using it.
There are several chart time frames I will post as examples on GBP/USD action last friday.The first is a one minute showing the gorgeous reversal of an upward move that firmly reversed at the 400. which occurred at 18:50 on my chart.
In this part I will discuss the EMA(400)..The 400 dose not come into play very often...I use it as expected support/resistance on excessive market moves.IOW if its fairly close to the Quad Tunnel its really not seriously in play.You will find that each individual pair has to be studied because..unlike the tunnel and EMA(62) it is respected by some pairs and somewhat ignored by others...on most pairs tho if an excessive move takes place the stopping point is usually the EMA(400).
Another thing about the 400 is finding the dominant time frame(s) in which it exhibits true support/resistance.In trading GBP/USD last friday I did quite well scalping it on 1 miute and/or 5 minute charts.I will post several charts on this pair showing some of the things I mentioned especially in finding a pairs dominant time frame where EMA(400) is concerned and in play.
GBP/USD and AUD/USD are a couple of pairs that seem to have fairly good respect for EMA(400) but the 400 is always a bit hit and miss unless a dominant time frame can be found..I always expect the 400 to stop or stop and reverse oversold/overbought intraday moves on GBP/USD but the nature of overboard momentum moves makes it less reliable than the tunnel and EMA(62)..these moves are that are caused by irrational excitement on news usually do not provide exact points of reversals or stopping points so that must be considered in using it.
There are several chart time frames I will post as examples on GBP/USD action last friday.The first is a one minute showing the gorgeous reversal of an upward move that firmly reversed at the 400. which occurred at 18:50 on my chart.
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