Article - Markets And Battlefields 4b

In Japanese Candlestick charts shooting stars are often known for price action where traders attempt to shoot for the stars but usually come sailing down back to earth. Shooting stars can either be dark or light, red or green in the diagram below to symbolize either a close that is lower or higher than the opening but with settlement for the day much lower in the form of a thick set body at the bottom of the price action of the day.

In the daily chart below of the EUR/USD on Jan 2015 the market price settled into 2 failed shooting stars in quick succession which became the precursor to a current sideways trading channel as neither bulls nor bears could find the strength to force a definitive direction.

shooting star 1 - red
30th Jan
open 1.132
high 1.136
low 1.128
close 1.128


shooting star 2 - green
2nd Feb
open 1.128
high 1.136
low 1.128
close 1.134

The failed attempts to lift the market on Jan 30 and Feb 2 after the dramatic plunge on Jan 16th set the technical tone that reflected the ongoing Greek debt negotiations with the market failing to find a sense of direction as ECB ministers sat for days without settlement. Ultimately a 4 month agreement was made on a debt solution. But that remains a temporary fix. Strong economic data from Germany may have held the EUR for the moment but would that be sufficient to hold the EUR up for longer as persistent worries over Greece continues? Technical indicators suggest lower prices are to come. It is just a matter of time for the large spec,s on the sidelines at the moment, to decide when to take another plunge and short the EUR. There are more fundamental reasons the EUR should fall as the ECB grapples with the Greek debt issue and overall sluggish economic growth fails to inspire the market for a higher EUR.


Further reading - 

• The Shooting Star - http://forexeducationperspective.blogspot.com/2015/01/article-markets-and-battlefields-4a.html
• The Hammer - http://forexeducationperspective.blogspot.com/2015/02/article-markets-and-battlefields-3b.html
• The Hammer - http://forexeducationperspective.blogspot.com/2015/01/article-markets-and-battlefields-3a.html
• The Hanging Man -  http://forexeducationperspective.blogspot.com/2015/01/article-markets-and-battlefields-2c.html
•  The Hanging Man - http://forexeducationperspective.blogspot.com/2015/01/article-markets-and-battlefields-2b.html
•  The Hanging Man - http://forexeducationperspective.blogspot.com/2014/12/article-markets-and-battlefields-2.html

Pieter Bergli - DeLoren Trust Holdings

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