This price chart might be the most well-known pattern for many currency traders. I am pretty sure that many of you see this pattern when you close your eyes. I see it in even in my dreams. Anyways, what the optimal way to describe it would be remains a secret. My version depends on my longer time-frame analyses and Roger Babson's multiple center line method. Here we see the ML creates a good balance of forces during the entire sideways action. The red ellipse comes from my weekly analysis as a potential high-strength zone. This doesn't mean that the market is targeted towards there, but just means that if the market goes there, the reaction is highly likely to be of great strength.
The latest bullish push has awaken the Stoch from its long-lasting slumber, and drove it all the way to the overbought zone. Now the consolidation around .5 LMLH is tidying up it back for more bulls to follow the rally until they exhaust their powers. A bullish crossover in Stoch under or around the red line shown in the chart may indicate the beginning of the new upward leg. Long entry opportunities are to be sought in lower time frames.
The latest bullish push has awaken the Stoch from its long-lasting slumber, and drove it all the way to the overbought zone. Now the consolidation around .5 LMLH is tidying up it back for more bulls to follow the rally until they exhaust their powers. A bullish crossover in Stoch under or around the red line shown in the chart may indicate the beginning of the new upward leg. Long entry opportunities are to be sought in lower time frames.