On September 28th I shared an article with all of you about my findings looking at three currencies and over laying it with Fibonacci.
It showed that all three majors werre tradinig at their low 23.6% range taking into consideration the recent highs and lows of the 4H chart.
This morning when I looked at the three currencies, their were hoving at 0.7188, 1.251 and 1.5306. This effecitvley works out to a move of 157 bps for the AUD, 115bps for the GBP and 50bps for the EUR.
Although, I am not a technical chart trader, this is an interesting observation. It just took 9 trading days for the majors to bounce back against the USD after laying in the trough for about 11 trading days.
It would be interesting to back test further other observations to ascertain the timing intervals between bounce backs from the high or from the low.
It could reveal a patten that may allow us to capture trading opportunities in the future. However, I feel the appropriate strategy would then be using a vanilla option to buy time for the market to come to us.
What do all of you think?
The Panthenon Investment Group 