This morning was very slow on the Euro but there was clearly only one direction to trade – long. Price came back to the slow moving average on diverging volume giving a very low risk entry. I managed to take Clipper 1 on one contract, hoping to get Clipper 2 on the remaining two contracts. Instead price made a high at 1.3202, and the 12 minute looked like it may have a magenta peak coming in so I exited the remaining two contracts at Clipper 1. Total reward for the trade was 42 ticks.
I am watching the Swiss Franc and Euro 720 minute charts for a potential magenta peak later this week. There is a possibility of magenta peaks on the 180 minute but there is not very much room for profits, as it stands right now, on those charts.
Also, on the Nasdaq yesterday, we had a beautiful upward movement from the 1440 ATR. Tocay the Nasdaq is about 15 points from the ATR on the 720 and the 180 is showing divergence on the highs. We may get downward movement unless the buyers come in strong at the US open. Remember, it is the testing after divergence that determines the market direction.
And on Gold, price is at the slow moving average on the 180 minute chart with no buyers interested in taking prices higher. However, on the 720 and 1440, sellers are not showing enthusiasm to take prices lower. Again, I would need to focus on the 180 minute chart as price is pulling back to the ATR and see if sellers step in to take prices lower or volume divergence indicating that sellers are not interested.