Levels for Wednesday

Very little action yesterday again so all our levels are still in place, I have added 1198.25 as a resistance. It looks like we may have a divergence on the 1 hour chart if we reach this level soon.

Value area high 1193.75
Value area low 1188.25

Long Trade

I took a long trade earlier, it was a 15 minute PIN bar coming off a false breakout of 1187.75 level.

Tuesday levels

Due to the lack of any real movement todays levels remain the same with the exception of the value areas which are as follows.

Value area high 1194.25
Value area low 1192.25

We have news at 1.30pm UK so lets hope that it moves the market and we dont have to endure another day like yesterday.

Fib retracement

I've now drawn a fib retracement from the low of 1171.25 to the high 1198.25, the 50% fib is on the same level as an old resistance from 8 April at 1184.75 and the 78.6 fib is right on a support level from 6 April. I will be watching these levels for confirmation before taking any trades.

Inside Bars

I have read that a lot of people look for inside bars to take trades. The theory is that it is a sign of exhaustion and that prices are about to turn. The rules for an inside bar are very simple, the high and low must be contained within the previous bar. In other words it has to fit inside the previous bar.

On the attached screenshot you will see that we had an inside bar this morning on the 1 hour chart which worked. Inside bars themselves do not provide a stoploss level, my stoploss on an inside bar would be 1 tick above the swing high/low which may be quite a big SL on occassions.

Gap fill

The gap which I said was about to be filled actually took another couple of hours to fill. Things are very slow today and with little or no news worth talking about it may stay that way. Our value area high is at 1188.50 but that looks miles away at the current pace.

Levels for Monday

We had a gap up this morning which is about to be filled as I write this. If we move higher we have good resistance around the 1200 level. This is based on 3 factors, firstly the round number at 1200 itself, an old resistance on the weekly charts at 1200.75 and the upward trendline that may come into play around those levels. There is support at 1187.75 and 1183.50 from last week and if we continue to move lower I will be watching the fib retracement drawn from 1171.25 low to todays high. The value area high is 1188.50 and the value area low is 1185, these will also act as areas of support and resistance.