Konstantin Boykachev

CEO Proforexea LLC

Honest Coder

Professional Trader


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Konstantin Boykachev

CEO Proforexea LLC

Honest Coder

Professional Trader

Blog Post

EUR / USD. 1st of October. The trading system “Regression channels”. All attention to technique

October 1, 2018 Analytics


4-hour timeframe


Technical data:

The senior channel of linear regression: direction – sideways.

The younger linear regression channel: direction – up.

Moving average (20; smoothed) – down.

CCI: -119.4921

The currency pair EUR / USD on Monday, October 1, continues its downward movement without any signs of an upward correction. After the Fed decided to raise the key rate, the bears continue to push the pair down. Although initially, it seemed that this was not the most likely scenario. Nevertheless, the dollar continues to go up for several days in a row. Today in the eurozone, reports on unemployment in August and the index of business activity in the manufacturing sector in September will be published. It is unlikely that these reports will be able to drastically change the mood of traders. Nevertheless, the correction is still quite expected, given the recent strong oversold CCI indicator, which has not been worked out. However, first of all, the beginning of the correction will be shown by the Heikin Ashi indicator. Until it turns up, market participants can only expect a correctional movement. If any strong and unexpected information, for example, from Trump, does not appear during the day, it is unlikely that we will see sharp movements and reversals today. Therefore, it is the readings of the Heikin Ashi indicator that would be the best way to determine the correction. In the United States, an index of business activity in the manufacturing sector of ISM is planned today, however, as with the news in Europe, it does not have the necessary degree of significance to lead to a sharp reversal or intensification of the movement.

Nearest support levels:

S1 – 1.1597

S2 – 1.1536

S3 – 1.1475

Nearest resistance levels:

R1 – 1.1658

R2 – 1.1719

R3 – 1.1780

Trading recommendations:

The EUR / USD currency pair continues to move down. Therefore, it is now recommended to continue to remain in short positions with a view to 1.1536. The color 1-2 bars in purple indicator Heikin Ashi will indicate the beginning of an upward correction.

Purchase orders are recommended to open in case of overcoming the traders pulling. In this case, the first target for the upward movement will be the level of 1.1719. However, today, we are unlikely to see this consolidation. The price is far enough away from the MA.

In addition to the technical picture should also take into account the fundamental data and the time of their release.

Explanations for illustrations:

The senior linear regression channel is the blue lines of the unidirectional movement.

The junior linear regression channel is the purple lines of unidirectional movement.

CCI – blue line in the indicator window.

The moving average (20; smoothed) is the blue line on the price chart.

Levels of Murray – multi-colored horizontal stripes.

Heikin Ashi is an indicator that colors bars in blue or purple.

The material has been provided by InstaForex Company – www.instaforex.com


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