Observation on the EURUSD

For some time now, I have found that linear support and resistance levels are not giving the best of results in some of the assets. On the other hand, if you create a slanted set of parallel lines, you can get much better correlation and reaction points. To show this, I have decided to bring a daily chart of the EURUSD:

Look how the violet support and resistance are not really helping when trying to coordinate entries or exits from positions. The blue lines, representing my "slanted" S-P concept have been working very nice. This could be referenced as "channels" but their number and span is not suitable for it.

I have marked many of the touching points with brown circles.

By this tool, we can predict, with a good amount of confidence that the best target for the pair to arrive to will be near 1.5250.

ForexManage

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