Yeah. correct me if I’m wrong, but looking at the top of the last couple of H1 candles, upward movement has been denied on low volume.
This thing is ready to fall. I’m watching for a good No Demand, and we could have a very nice setup.
Given all the discussion, I entered off the 2nd ND that showed up on my practice account, then entered on live at same level at news time. Figured had a sign of weakness in the background plus the supply shown on the 1H and the lack of progress beyond the .50 Fib of the initial downmove. Didn’t realize how close to that .50 Fib of the rally was that started the week, but going to let the rest run.
Yeah, got out at the 50ish fib.
If I remember well there is a rule: do not trade into a 50-61.8 Fib area.
Pre-session analysis:
GBP/USD
Looks like a good long, but watching out for the resistance zone, showing on the 4HR chart
EUR/USD still looks a bit sideways to me right now, but the 50-61.8 fib volume may have been just to push prices back up so they can continue with shorts…
USD/CHF looks like we’re hitting a long term support line, with high volume confirming it
Interesting session up ahead!
Just double checking (remembering something I forgot everyday!), the inverse is true for accumulation?
There was a posting a couple of days about how simple this approach was compared to other VSA stuff, well yes it is in principle, but there is a lot to it, the more you learn the more you understand the more you remember the more money you make, the more you learn, the more you understand etc etc etc etc…
But yes, a great place to start is with the basic simple plan, then start reading/learning between the lines, to make sure your entries are valid, so don’t be put off by all the terminology, climax, thrust, stopping volume, reaction, test, etc etc etc. the more of these you understand the better you will get, it’s just like learning anything else, there is a steep learning curve, but for some reason this doesn’t get appreciated in Forex, I know I didn’t, I mean how can it be hard? it will only go up or down?
Why not trade the news?
Here’s something kind of mind blowing that happened last night. Australian CPI data released at 0030Z last night with “bearish” news with a quote from DailyFX:
“target on audusd short is 10350”
There was a lot of buying going on prior to the release. When the data came out, the price was marked down rapidly, in perfect “shake out” form, then rocketed up 50 pips in a blink of an eye. Just goes to show that news isn’t really what you want to be following… volume and price action tell the true tale.
Yes, bang on traderjoo, it’s the reaction to the news that’s the key, or rather just the reaction regardless of what the news is.
It certainly was, keep an eye on those news announcements, forget what the news is, just trade as normal, but there is a good chance that you’ll get a good signal, like today’s up thrust trap move followed by an ND, no brainer trading!
What a great week, a great trade long on Monday, a great short today, a small blip yesterday, and thanks to traderjoo and petefader I got out at just under BE.
That was great! Wow.
I was asleep and didn’t catch it.
I’m long currently after a 15m [B]NS [/B]of the 61.8 fib.
I don’t think it’s a good idea, you’re trading off off one solitude ND bar, you need more than that for an entry.
The rejection at relatively higher volume in the 61.8 area, coupled with the 1HR confirming an uptrend.
I figured it was implied that strength was in the background. I’ll be more clear next time.
Ahh, you meant an NS.
Oops! Yes. Abbreviations get ya.
i dnt believe dat was enough stopin volume and the ns…i tink u were just lucky on dis tarde…my opinion…ur entry was too aggresive.
I’ll defend it with a long term uptrend with the 1Hr chart showing a perfect rejection at 61.8 from the last down move.
The volume was not ultra high, but surely represented buying, especially the confirmation of the NS.