It is natural for traders to fade the trend.<\/b><\/p>\n
Seeking value, one expects that elevated prices after a steep uptrend mean overpriced<\/b> and low prices after a big correction always mean underpriced.<\/b><\/p>\n
Looking for value is something natural for the Homo Economicus. When we go to the store, we are looking for discounts.<\/p>\n
But with Markets, discounts don’t always translate well with good trades.<\/p>\n
The steep uptrend in EURUSD from January to the 1st of July brought the pair from 1.01 (close to parity) to 1.18 in a spectacular move.<\/p>\n
Those who bet on a reversal then initially got proven right, with the pair falling 4,000 pips during the same month. But, those who were expecting a full downtrend to form got met with a slap in the face.<\/b><\/p>\n
From end-July to the September FOMC meeting, the pair actually consolidated and went to break new yearly highs<\/b> \u2013 Currently at 1.19188.<\/b><\/p>\n
Such a strong uptrend usually leaves banks and algorithms looking for spots to re-enter the trend. These strong flows lead to consolidation and continuation of the trend.<\/p>\n
Now turning to today \u2013\u00a0A bearish divergence double-top<\/b> made at the new yearly highs is following with what resembles a longer-run correction.<\/p>\n
The lesson ? Strong trends often don’t reverse in one shot<\/b> \u2013 Double tops tend to be more accurate signals and the same works on all timeframes.<\/p>\n
Let’s explore a multi-timeframe EUR\/USD analysis to look into the details.<\/p>\n","protected":false},"excerpt":{"rendered":"It is natural for traders to fade the trend. Seeking value, one expects that elevated prices after a…\n","protected":false},"author":2,"featured_media":14540,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[175],"tags":[79,18,19,17,188],"class_list":{"0":"post-120104","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-business","9":"tag-eire","10":"tag-ie","11":"tag-ireland","12":"tag-markets"},"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/120104","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=120104"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/120104\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/14540"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=120104"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=120104"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=120104"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}