The trendline is going up but then we have one bullish candle, a shooting star and one tall bearish candle.
At the same time, it creates lower high and lower low after a consistent series of higher highs and higher lows.
That should suggest that reversal is coming. Why it didn’t continue in a downtrend? Did it reach a support level and bounced off?
That’s quite an interesting chart. The first thing that caught my eye was the period of 5 days around 15-20th Sept that had almost identical ranges and with the last 4 of these days forming Dojis. That was a long period of bull/bear battling. It was then followed by a significant drop before again recovering.
The recovery, though, fell short of those Sept highs and dropped back to earlier, rather vaguely defined, support zones before sharply rising and breaking through those earlier highs.
These are easy to see in hindsight but not so easy to interpret in real time as they unfold. It is worth noting that S/R levels are not pip-specific and are more in the form of zones or regions than just lines.
Its a good effort on your analysis @tom.pav but we aren’t in exact and immutable science.
AUD has been bullish on all 7 of its charts amongst the 28 major charts for weeks and weeks - the only thing to do for so long has been to buy AUD and take profits and buy AUD and take profits. In such a phase, any AUD pair would do - most weeks NZD pairs would have been even better.
I’m sorry, I know its your first post but I just have to add that one-bar reversals from uptrend to downtrend look incredibly dramatic but they are incredibly rare.
I think you are doing a good job. What you are asking about might be easy for some but not all. It will take some time to interpret these in real time after they unfold. The support and resistance levels must also be noted.
There are different types of charts in the forex market used by traders to incorporate technical analysis to determine where to invest their funds, as they can reveal the existence of trends. It is up to you to choose a chart type that you understand well, and learn using it in your trades.
