View Single Post
  #344 (permalink)  
Old 09-07-2007, 01:51 PM
Tess Tess is offline
Master Contributor and Member
 

Join Date: Jul 2007
Location: American in UK
Posts: 419
Default

To add:

You'll often notice when prices get shoved aggressively one way or the other, you'll witness a small pullback or small reversal? If price merely dies away & stretches out into a lethargic consolidation, this can generally be perceived as a "testing base" by the opposing camps (Bulls/Bears).

It's a stand-off, where one camp is teasing the other into making the first move

Whoever sneezes first, loses the ground!! Realistically, what's actually occuring is a slow, steady build up of either supply or demand.

If the resting zone (in this instance 229.0 on GBPJPY) proves a non-event for the demand camp, then prices will continue to fall. If 229.0 proves a reasonably strong area of demand & traders find good value here, prices will move back up the ladder.

Nothing scientific or secret about the activity at all...merely the forces of supply & demand. Which is why these previous zones of s&r are witnessed on the larger timeframe charts!
Reply With Quote