Quote:
Originally Posted by brad_1199
Cmellon... Kind of curious what your delta logic tells you about EURJPY.... I am very confident in the diagonal triangle scenario that I show in the chart below, but something tells me your delta logic likely points down much sooner.... If you have time for a reply, great 
EURJPY Daily Chart -------------> |
Hi Brad,
EUR / JPY is not my specialty. I do not have LTD chart with this pair. If I do, that will boost my confidence a lot more.
Having said that, I am pretty confident with this MTD chart I am about to show.
If you look at the chart, let's start with the low of this year at 112 (I put rectangle at the chart). Let's call this MTD 1 low which is also LTD 1 low.
From that low point to the high at 139.2, you could count three MTD highs (MTD 2, MTD 4, and MTD 6). I circle MTD 2, MTD 4, and MTD 6 for you.
The reason I am sure these are MTD points is because you compare the turning points to the previous cycles and that's where they were due approximately. If you look at previous cycle, MTD 2 was due between yellow and green vertical line. MTD 4 was due near green vertical line, and MTD 6 was due slightly before red vertical line.
Delta rule says there could only be a maximum of three series of higher high. In this case, from the low point of 112 (MTD 1), we already have three series of higher highs in MTD 2, MTD 4, and MTD 6. Delta rule says MTD 6 must also be LTD high. In other words, if the low point of 112 is LTD 1, the high point of 139.2 must be LTD 2.
The implication is that since the LTD (a higher TF than MTD) now is travelling down, we will have a series of lower high and lower low in MTD chart.
