Hi mate, my analysis style doesn't take into account overbought...

Hi mate, my analysis style doesn't take into account overbought and oversold indicators too much per se' as I see them as a lower probability indicator.

I do believe however that these show up to me in a round about kind of way via the MA system I use, I generally know by the interaction of the MA's and the dance and patterns they make as to when they 'need' to come back to each other and when they are happy to just keep rolling. When I look at the MA's at the moment, I see a lack of this need at present and a huge momentum movement still under way.

This has also been highlighted to me by the consecutive fib targets that pop up one after the other. No sooner do we reach a D1 target than it becomes a new a-b-c pattern to give us a new D1 target even higher. Today is a perfect example of that again. We have just hit the 161.8% at 0.485 and rather than the usual messy bounce and consolidation that takes place it is gives us a brand new target and trading opportunity (for those inclined - not me) I'll post the fib trades below.
As for volume, the large volume in this case has put upwards pressure on the price. People are net buying in a big way. Any retrace on low volumes should recover quickly as the lack of volume and the lower price indicates a buying opportunity to the net group. When the volumes start to increase but the price doesn't change in step, (or the volumes maintain their strong trend but the price begins to slow) it indicates that there is more of the volume flicking over to a selling sentiment. This is where volume indicators can show it visually. I prefer looking for divergence on the MACD histograms

Here was that earlier fib trade, as per a screenshot taken the other day for this post

A-B-C with a 61.8%(or 50%) retrace gave us a 161.8% D1 target which hit today. If we close above and bounce off the 161.8% fairly quickly it puts D2 on the table at 0.58 - just 7 cents shy of our massive 685.4% @ 0.65. Suddenly it is doesn't seem like such a ridiculous idea any more


Today's chart:
Same abc pattern, same 61.8% retrace gives us a current and new D1 target to reach for at 0.535 and D2 at 0.60.


In both cases we want to see a bit of a pop into the 50s followed by a turn around to test the strength of the previous resistance at the 48.5-49.5 zone as the now new support. If it holds strong and gives us a bounce(s) we are on our way to the above targets, probably today's (pink fibbo) D1 as priority followed by a touch of the earlier (white fibbo) D2. If on the other hand it is doesn't break and hold that zone we may finally get our breather.

Remember, this is just a probability - not a definite. Let's watch and see what happens.