[keymoo]

Daily hammer on the Euro

What are your thoughts?

[MadMarketScientist]

keymoo -- good analysis.

I'm seeing on my 30 minute charts for the EURUSD that I don't yet have a buy set-up but it's the closest hit has been since those same charts fired off a short at 1.2748 back on 5/10. If it was going to happen in next 24 hours my guess it would have to be above 1.2450 before I had something going.

I also look at range bars, and on a 20 range I would have a buy set-up it it gets back up through 1.2437 - no huge targets -- 1.2540 but it's got a little ways to go today before that would happen - faltering and choppy here.

Thanks for your input.

[keymoo]

Thanks for the reply, I'm still a new trader and I haven't developed any strategies as yet but just merely observing and watching how price reacts to key support and resistance. I will develop strategies from my observations in time.

What do you mean by "range bars" and a "20 range"?

[MadMarketScientist]

Keymoo -

Range bars are another "interval" that one can use. Most traders initially think about time intervals like 1 minute and 5 minute bars. Personally I'm not a fan of those at all for trading - maybe swing trading but not day trading.

From there you have choices like "tick bars" which are bars that form after "x" amount of trades have occurred.

A range bar is a bar that is always the same length. For example, everytime the EURUSD moves 20 pips up and down, it will plot a bar. New bar forms, moves up and down and as soon as the bar is 20 pips in range it plots another bar. These do a pretty good job of smoothing out a chart while showing all the price action.

Hope that helps a bit.