EUR/CAD psar bull signal

The euro and Canadian dollar  (EUR/CAD) showed a psar bull signal on a sharp rise. The Forex currency pair has traversed 1.6% low to high so far today.

The adx is at 48, a level in theory not much prone to whipsaws. However, a glance at the three month chart shows occasional bouts of whippiness: a Three-day whipsaw to the bull side in late February, six days in late January, three days in mid-January and one day in early January.

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
EUR/CAD 1.3787

I would note that the whipsaws all came with signals that were countertrend, and such is the case with today's psar bull signal. Long-termEUR/CAD has been in a downtrend since Dec. 31, 2008; short-term, since March 1 of this year.

The signal is well buttressed by the other tools in my kit, but so were the last whipsaws.

You are here:

• Reversal
• 1.4755, +7%
• 1.4367, +4.2%
• 1.4103, +2.3%
• Now 1.3787
• Reversal
• 1.3570, -1.6%
• 1.3287, -3.6%

With the long downtrend, it's necessary to go back to November 2007 to find a downside reversal point!

This signal will be followed in the daily Watchlist, which is posted beginning around 2:45 p.m. Eastern. Look for it at www.timbovee.com.

About the glance:  The colors indicate the state of each signal.

• trend: green for up, red for down, yellow for sideways
• adx: green for above 30-up, red for 20-down, yellow for in the middle. Red is most prone to whipsaws
• psar, pps, macd: green for bull mode, red for bear
• sto: green for overbought, red for oversold, yellow for the neutral zone.