EURUSD - is its patterns inconsistent with price action on daily time frame?

[jodistrict]

I have a few observations.


1. The statement "I found that its patterns are not consistent with price action" is not stated correctly. That chart IS the price action. Imposing your opinions on what is in front of your eyes will surely result in losses.

2. There is nothing unusual about the daily chart. In fact it is quit typical. After a huge sell off climax bar like that, you would expect a pullback. And, if you take out a Fibonacci tool and measure from the top to the bottom of the spike, you will see that it pulled back 50% almost exactly, which frequently happens in currencies. It may rally further and there is a chance it is forming a bear flag and will reverse down. You have to look at what is in front of you and judge the buying/selling pressure to determine the likely direction.

 

[victorycountry]

I have a few observations.


1. The statement "I found that its patterns are not consistent with price action" is not stated correctly. That chart IS the price action. Imposing your opinions on what is in front of your eyes will surely result in losses.

2. There is nothing unusual about the daily chart. In fact it is quit typical. After a huge sell off climax bar like that, you would expect a pullback. And, if you take out a Fibonacci tool and measure from the top to the bottom of the spike, you will see that it pulled back 50% almost exactly, which frequently happens in currencies. It may rally further and there is a chance it is forming a bear flag and will reverse down. You have to look at what is in front of you and judge the buying/selling pressure to determine the likely direction.

Although with GBPUSD I have yet to encounter another a rally after there was a decline on the top of rally maybe it could happen to GBPUSD one day. So it's good to learn this time. So after all, I have to focus on the intraday timeframes than daily. That's not a problem to me.

I do not know how to use Fibonacci but since a lot of traders mention it, I will definitely study it.

Now I have realised what I was missing.

Thank you very much, Jodistrict

 

[victorycountry]

Since I've been corrected about Euro (thanks to jordistric) I immediately realized that the next move would be UP. Anticipating it based on daily, I initiated a long based on1 hour cos there were two bars (one bearish, one bullish engulfing bars with higher high and low, which jack Hersey said money making bar pairs) and earned 25 pips and recovered Friday loss. Since this up move is part of pullback, it didn't have much volatility but it was an good opportunity to learn something new about Euro and its difference to GBP (thanks to both Jordistict and Maverick 74)

Since the distance to ma13 is near on daily, this upmove pullback seem to last tomorrow...