A Built Case on Euro Direction

After sitting aside for a few days while price moved North against my previous analysis, I started to build a case to be on the right side for the next move. Luckily, my pip net strategy kept the loss small and to one trade.

The first piece major piece of the puzzle is simply a trend line. Going back to the Manual Gann Fan created on the Euro 30 minute chart, price has failed to penetrate a trend line. That trend line also provides the stop loss area.



The next piece is a "Natural Cycle" I keep track of. It doesn't always hit dead bang on the vertical lines but hits often enough and usually within a reasonable window of a few days either side. Keeping track of the swings reveals an interesting pattern. Price looks a little early, but close enough to call it a swing top based on a perponderance of the evidence or however you spell it.



Like the ellipse, the parabola is a powerful geometric shape. And like the ellipse it is also a conic section. In fact, the parabola can even be considered half of an ellipse. The method I use I picked up from a friend, Soso. No image for this one, but it's pretty easy to visualize. Basically imagine the cup/handle pattern, but with a bowl instead. Look for instances of symmetry for the lowest or highest point of the parabola.

The final piece to talk about here is the Gann Square of 144. 144 is 12 squared. It is also a Fibonacci number. Gann said that those were very important numbers because they show up in the Bible a lot. 12 is also the number of signs in the Zodiac of which Gann was very versed. I have two instances of the chart. One for calendar days and one for trading days. It's always tough to know which is going to matter the most, but both are at key lines or angles.



There is actually one other piece. The US Dollar Index is still playing out in the ellipse from a few posts back. Notice how price is at the ellipse boundary and also the 90° mate to the root ellipse axis. If it holds, it has no where to go but up. (That means down on the Pound and Euro. Up on the Yen, Loonie, and Swiss Franc.)