Euro Bund Market Update

For the purpose of diversification it is a great idea to look at some other markets sometimes. Sure, it is absolutely favorable to be an expert for one particular market but fine tuning the own analysis skills is quite beneficial, too. That said, here we go with Euro Bund.

As usual, we shall take the time to look at the higher time frame. The periodicity of the higher time frame depends obviously on our trading methodology or style. If you are a long-term trader which holds a position for weeks or months it makes more sense to begin the top down analysis process with the yearly perspective. Short-term traders or intra-day traders like myself should start off with the weekly chart in my opinion, as we hold positions only for some hours or minutes. There is no need to use your valuable time to go through all the timeframes because this would only lead to an information conflict with a confused mind.

Now then, looking at the weekly timeframe, we can observe a one-time-framing higher behavior which occurs since two weeks. The next observation would be the test/break of a swing-high (lower high). We’ll need to see how the price/liquidity action in this area will develop some pattern to be a possible seller. The close of the week will be an important piece of information to conclude any bias. However, my intuition want to see some higher prices for a perfect “pattern”.

2017-02-20_21-18-39dailychart

Today we gone literally through the roof. Actually, we never broke the one time framing higher behavior on the daily timeframe. The market quietly dipped below Monday’s low but “quickly rejected” lower prices and did not close below it. Yesterday’s information should be the first hint for a possible exploration to higher prices in today’s trading session. Today’s close will determine tomorrows possible bias.

2017-02-22_21-17-29bunddaily

On the hourly chart I have marked a possible area to looking for any opportunity for a long trade. That’s my personal view/plan and can change very rapidly.

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The Private Banker 1 year ago Author's comment

The weekly chart is wrong. Sorry about that. Here is the right one:

leprivatebanker.com/.../...3-08.bundsweeklypng.png

Bruce Powers 1 year ago Member's comment

Thanks for the useful update, keep it coming!

The Private Banker 1 year ago Author's comment

Thank you! I will keep it up for sure.