Setting Up a Swing on the EUR/USD

The 15 minute EUR/USD has alerted at Triangle Complete Pattern with a Forecast Region waiting between 1.3490 and 1.3510.  The resistance on this 15 minute chart may seem like it has limited potential upside but then again remember it is a short time frame as well.  What this small bounce could set up are corrections on the longer term intraday charts like the the 60 and 240 minute charts.

The overall trend on both the 60 and 240 minute time frames is down and this means that the pattern alerts to keep an eye out for are Channel Downs and Falling Wedges.  This type of trend information and thus expectations allow for more rapid and focused use of the Autocharist platform.  There is a current Channel Down pattern on the 60 minute but the range is too wide to play a corrective short off the downtrend line resistance and leaves the breakdown through downtrend line support as the only possible set up.  However, the London/New York overlap is young and with the 60 minute chart there is a possibility that a narrower range could develop.

Keep in mind that the 30 minute chart, like the 15 minute, is still a sideways market and this means that triangle and rectangle pattern alerts should be watched for.  These congestion/consolidation patterns could also set up the corrective shorts on the longer term charts.

Today’s lessons is this:  Remember that shorter term time frames can set up triggers on longer term time frames like the 15 and 30 minute charts moving higher through resistance to set up swing trades following the current downtrend on the 60 and 240 minute charts.  Also, by being aware of the current market trend on each time frame, there is the opportunity of more focuses use of the pattern alerts.