Monday 20 October 2014

Was That Hanged Man Candlestick A False Signal?




Back on Friday EUR/USD formed a hanged man candlestick on the daily filter chart right under the resistance level at 1.2840, so at the time I assumed it was a signal for a new descent. And while we did see the price dropping a little, it was nowhere near what I expected it would be. Now there is another doji candlestick in the daily filter chart, perhaps signifying another reversal. At this point I am not convinced either way. Range continues, but until EUR/USD breaks above the resistance at 1.2840, I do not think it we can tell for certain that it will keep climbing.

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