Archive for the ‘ Value Area Trading ’ Category

Sunday Night Chart Looking at Value


Waiting on a catalyst…

As written on 9.09.10, this market lacks a clear direction with range bound action imminent until a force nudges us in one direction or another. ¬†Currently we are making an attempt to extend the short term range, but still in the bounds of our longer term range. My current strategy is to continue selling extremes back to value… Above 2900 it is time to reevaluate, and consider some trending scenarios.

Testing the Value Area Low

We are testing the Value Area Low with a momentum divergence, pointing to further range bound trading. There are low risk opportunities in this range. We are bouncing around inside an upward channel. I am keeping stops tight and looking for rejection at the extremes and taking profit at the VPOC…

Testing Value Area Low

We are testing today’s Value Area Low. If we make it through convincingly, I will be looking for short entries. If we bounce here, I’ll be watching for an opportunity to scalp a few longs, until I’m more convinced this down move is over.

8.16.10 EUR/USD

Every attempt to extend the range has been rejected. ¬† Above 2780 I will be looking for short term buying opportunities. Looking for reactions at 2820 and 2846 and a break of this downward channel…

Here is where we are currently with notes…

8.12.10 EUR/USD

Well, we managed to get a small bounce. Price bounced off the 23.6% retracement in the overnight session sending prices to a lower low before the New York open. Then again attempted another rally that was shut off at the 61.8% retracement from the over night high, which sent price below yesterday’s value area. I will be watching to see the reaction of a retest of today’s value area high at 1.2884. If rejected I will again be looking for short opportunities in tomorrow’s session. If you like candlestick patterns you’ll notice a nice tweezer bottom on the 30 minute from 7-8 this morning.