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Thursday, November 3, 2011

EUR/USD: Numerical Analysis (R3 & S3 Formulas).


Forecast

Mourad El Keddani



Use time frame of H1 or/and H4 (It's more precise) to determine the Resistance 3 (R3) and the Support 3 (S3).

Tip: For determining accurate Resistances and Supports, it should be used an average time frame (H1 or/and H4) aswell it also should applied Fractals' indicator.
Steps: on your MetaTrader4 (MT4), you can click on the 3rd tap: Insert / Indicators / Bill Williams / Fractals.

Apply Formulas:

R3: Resistance 3 = 1.4020.
S3: Support 3 = 1.3450.


Function = (R3 - (R3 - S3)) * 38%

The market will indicate a bearish opportunity on level of: (R3 - (Function / 100)) = 1.3977.
The market will indicate a bullish opportunity on level of: (S3 + (Function / 100)) = 1.3503.

It should be noted that:
(Resistance.3 + Support.3) / 2 = 1.3740 and Pivot Point = (High + Low + Close) / 3 = 1.3736.
Therefore, pivot point will be formed a period of tight sideway range market at this level, so it is of the wisdom to be neutral at 1.3740 and don't open any positions.

Trading Recommendations:

According to previous events, the price has still been trapped between 1.35 and 1.4.
  • Buy above 1.35 with a first target of 1.3740, it might resume to 1.39.
  • Below 1.4 look for further downside with 1.38 and 1.3740 targets

Observation (s):

  • Please check out the market volatility before investing, because the sight price may have already been reached and scenarios become invalidate.
  • Stop Loss should NEVER exceed your maximum exposure amounts
http://instaforex.com/forex_analysis/42947/?x=OUE 
InstaForex

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