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Euro - A Clustering Of Closes
Thursday, March 04, 2010
by Michael Noonan of Edge Trader Plus
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Thursday 4 March 2010 The weekly chart shows five consecutive weeks of price closing within a narrow range. Whenever you
see such a clustering of closes, it often marks a turning point for a counter rally. We wrote an article on
the Euro and clustering closes, recently, Euro - Clustering Of Closes, [click on http://bit.ly/cXXZhm]. When
the clustering occurs on a higher time frame, its relevance is more important. The clustering is developing
at a previous support point from May 2009, when a large rally began. Convergence from different points
tends to give greater weight to an anticipated area of support or resistance.  The daily chart gives greater detail of the trading range. One can see that the bars nearest the low of the
trading range have higher end closes. This tells us that buyers were present, acting stronger than sellers
or the closes would have been lower end. Today is a retest sell-off, and we see it as an opportunity to
take a low risk long position that could lead to a fairly decent counter-trend rally. 
Recent articles from this author
- Copper - Trending Higher - Wednesday, January 25, 2012
- Swiss Franc - At "Danger Point" Support Area - Thursday, January 12, 2012
- Gold And Silver - 2012 Off To An Interesting Start - Tuesday, January 10, 2012
- Precious Metals - Review Of Annual - Wednesday, December 28, 2011
- Euro Currency - Flip A Fiat Coin - Monday, December 26, 2011
About the author
Michael Noonan is the driving force behind Edge Trader Plus. He has been in the futures business for 30 years, functioning primarily in an individual capacity. He was the research analyst for the largest investment banker in the South, at one time, and he managed money
in the cash bond market for a $5 billion pension fund using Peter Steidlmeyer’s Market Profile. Proficient in Gann, Elliott Wave, Market Profile, etc, Mr Noonan no longer uses any of those technical procedures. Instead, his primary focus is on developing market activity, relying solely on the information generated by the market itself, such as the interaction between price and volume, and how they relate to important price levels in the market structure. He incorporates proven market principles, such as knowledge of the trend, supply and demand, along with disciplined rules for to find developing high probability trade opportunities. He can be reached by e-mail at his website: mn@edgetraderplus.com
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