FX Market Readings

Operators' intentions read by Dr. S. Sivaraman, of i-knowindices.com

Or subscribe via email:

Webinar Recording Series: My Trading System

I - II - III - IV - V - VI - VII - VIII - IX - X

FXstreet.com Weblogs

Links

Gap time drop- false move

Posted on June 30, 2009 at 13:38 in Market comment, Market forecast, Operators' intentions by Dr. S. Sivaraman

EURO and GBP made the massive rise as big rise towards close of Japanese session and Early European session.Then the holding and selling has started to make the downward stop hunt move during gap time before us session and cut the lows in them.This indicate that the players want to rise during US session as firming up moves and later rise above high towards close of the session to open high for new month.Expected US session profit booking move has happened before start of US session.

Regards

Dr.Sivaraman

27 Responses to “Gap time drop- false move”

on 30 Jun 2009 at 1:44 pm1shoora

Hi doc,
Does the 10-30 min rule translate for longer time frames? When they set the high at the beginning of the month and do not break it for 1-3 days (for example) it would indicate a forthcoming drop?
on 30 Jun 2009 at 2:18 pm2Francesco

Dear Dr. I was caught long during this last drop.

Do you still see chances for GBP to go above 1,6550 today or tomorrow?

Regards,
on 30 Jun 2009 at 2:19 pm3EC

It does not look like the eur and gbp will go up today
on 30 Jun 2009 at 2:29 pm4Kevin

If the profit booking has started, have the players built all their shorts and will not cut the highs anymore? Is this the reversal happening right now?
on 30 Jun 2009 at 2:36 pm5Nazali

Hi Dr

So would it be best to wait for eur and gbp to break today’s high and then short?
on 30 Jun 2009 at 2:54 pm6poorbanks

good day Dr. are we expecting a 200 pip rise from 1.6425 today
on 30 Jun 2009 at 2:55 pm7su25

Dear Doc
Gbp/Usd - since the drop has been quite significant, any bounce should induce profit taking from higher level short seller. Does this imply that the rise will be quick and “an extendsed stop hunt” to clear out all the short sellers, followed by an equally quick drop, to trap the long holders, and start the intentional drop?
Regards
on 30 Jun 2009 at 2:56 pm8Rohan

hello dr,
As you mentioned saying that eur and gbp will rise above in US session , so they will be crossing above 1.6750 in gbp to make new high for new month ?

Thank you
on 30 Jun 2009 at 3:14 pm9SMM

Doc- I am totally confused and frustrated I understand that you can’t be right all the time but I can’t figure any rational concepts to explain what is taking place for the drop of EU and GU which is completely opposite of what was predicted? How can I understand this better? Thank you
on 30 Jun 2009 at 3:21 pm10su25

Dear Doc
It is exactly 30 mins since a new low was made and has not been cut or tested again. Good to go long with 30 pips hedging below previous low? Gbp @ 1.6445 (low of 1.6422) Eur @ 1.4021 (low of 1.4001)now.
on 30 Jun 2009 at 3:28 pm11ejthekkan

Dear Doctor
do you agree with su25? i entered at 164.44
on 30 Jun 2009 at 4:47 pm12balanced

Why can’t this be the intentional drop in the GBP/USD? Do the facilitators always have to stop hunt as they seem to not want to rise the market in the mid to late European session and early to mid US. What does this tell you?
on 30 Jun 2009 at 5:02 pm13ejthekkan

Players want us to think and act accrordingly. then they may raise the market today or tomorrow.
on 30 Jun 2009 at 5:04 pm14Dr. S. Sivaraman

Dear shoora

first week of the month the trend reversal volatile moves will prevail and appear directionless.From 2nd week we will see week beginning false move - that will indicate the trend till end of 3rd week.
Regards
Dr.Sivaraman
on 30 Jun 2009 at 5:04 pm15Dr. S. Sivaraman

Dear Francesco
Yes
Regards
Dr.Sivaraman
on 30 Jun 2009 at 5:05 pm16Dr. S. Sivaraman

Dear EC

what appears in the market is not true.we need to watch and understand that.
Regards
Dr.Sivaraman
on 30 Jun 2009 at 5:08 pm17Dr. S. Sivaraman

Dear Kevin
it is only month end volatile move.Not trending move.
Regards
Dr.Sivaraman
on 30 Jun 2009 at 5:09 pm18Dr. S. Sivaraman

Dear poorbanks
Slow rise is now intentional move.if you are patient they will reward.
Regards
Dr.Sivaraman
on 30 Jun 2009 at 5:14 pm19Dr. S. Sivaraman

Dear su25
the sudden drop was to hit the stops of higher level buyers and breakout traders who found the resistance has become technical support above 1.66 area.For better risk reward they would have kept the stops below todays low.but they players first filled the stop - the players will rise, but the reward will not be seen in such risk reward trades.
Now players are inducing short selling from technical traders.But you know the sell after drop will be unproductive.
Regards
Dr.Sivaraman
on 30 Jun 2009 at 5:16 pm20Dr. S. Sivaraman

Dear Rohan
Slow rise is not to go above high- just to induce short selling.We will see towards close some more rise.
Regards
Dr.Sivaraman
on 30 Jun 2009 at 5:17 pm21Dr. S. Sivaraman

Dear su25 & ejthekkan
sorry I could not reply immediately.The answer is YES.
Regards
Dr.Sivaraman
on 30 Jun 2009 at 5:19 pm22Dr. S. Sivaraman

Dear balanced

you may be right.But we have to wait and underastand.My analysis I am giving in the post.
Regards
Dr.Sivaraman
on 30 Jun 2009 at 5:55 pm23ejthekkan

Thanks a lot Dr.
on 30 Jun 2009 at 10:19 pm24SMM

Doc- I am totally confused and frustrated I understand that you can’t be right all the time but I can’t figure any rational concepts to explain what is taking place for the drop of EU and GU which is completely opposite of what was predicted? How can I understand this better? Thank you
on 01 Jul 2009 at 2:12 am25radha

Dear Dr

GBP/USD has taken a huge hit….dropping over 320 pips from the days high…..still we have not seen the upward stop hunt….so we may expect the next higher high and upward stop hunt (1.68 to 1.7 area) before the expectecd downturn in cable.?? Thnx
on 01 Jul 2009 at 5:51 am26TheRumpledOne

Did I miss something?
on 01 Jul 2009 at 6:51 am27Dr. S. Sivaraman

Dear radha
A quick rise is expected before the next week drop.
Regards
Dr.Sivaraman

Theme by Forex Street Powered by Wordpress

The comments and posts published in this blog ARE NOT trading recommendations. They can NEVER be considered as trading calls or advices. If you decide to use the information offered here for your real trading it is at your own risk.

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.

Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.