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bobnat · 10-09-2006, 09:18

Ok, here's my take on it. Price failed to reach the Median Line for the 5th Pivot. The purple line was a warning line and I shorted at 8930 on Wednesday and 8836 on Thursday. See first pic. This set up a new pitchfork.

The week ended by making the 50 retracement from the bottom at 8091 to the high of 9142. We also made the 1.272 extension from 9142-8776-9091. (The Cable makes lots of 1.27 extenstions btw.) However, it broke cleanly through the Median Line and closed well below it. This sort of strength indicates it's heading for the next line.

Look at the second pic and you'll see confluence of the 62 ret, 1.618 ext and the Median Line Parallel all exactly at the same point.

Now, I'd be willing to bet that everyone and their brother expects a retracement on Monday (at least the retail traders) which just naturally leads me to conclude that it's going down to 8490 before it goes up and makes any serious retracement.

Nat

10-09-2006, 09:18	#16
bobnat Ain't I pretty? Join Date: Feb 2004 Posts: 710 Downloads: 1 Uploads: 0 Rep Power: 0	Re: GBPUSD Discussion Only Ok, here's my take on it. Price failed to reach the Median Line for the 5th Pivot. The purple line was a warning line and I shorted at 8930 on Wednesday and 8836 on Thursday. See first pic. This set up a new pitchfork. The week ended by making the 50 retracement from the bottom at 8091 to the high of 9142. We also made the 1.272 extension from 9142-8776-9091. (The Cable makes lots of 1.27 extenstions btw.) However, it broke cleanly through the Median Line and closed well below it. This sort of strength indicates it's heading for the next line. Look at the second pic and you'll see confluence of the 62 ret, 1.618 ext and the Median Line Parallel all exactly at the same point. Now, I'd be willing to bet that everyone and their brother expects a retracement on Monday (at least the retail traders) which just naturally leads me to conclude that it's going down to 8490 before it goes up and makes any serious retracement. Nat Attached Thumbnails __________________ The author doesn’t endorse any of the products or services provided by unsolicited links in this post. MoneyTec may have modified this post at their discretion without the consent of the author. Last edited by bobnat : 10-09-2006 at 09:22.