The buyers didn’t line up at the usdjpy store so far this week. The week is not over.
Look at the chart below:
It’s not a “magic” indicator. I plotted the lines by hand. Now before you think there is something useful in those lines let me assure you there is not. The lines connect the bottoms of some of the red candles. Nothing more. There are those who would lead you to believe in the “predictive powers” of these lines. That would be rubbish. When the buyers think they are getting a “bargain”, they start buying. That’s how simple it is.
Im thinking that this price is really starting to look like a bargain. Don’t want to rush into it though with it being a holiday.
The buyers were not impressed with the usdjpy sale and left empty handed.
Price too high for eurusd buyers.
The quick answer is price action. Something that is bantered about but only a few have a grasp of and one reason why most traders lose. What action can price have? Up or down. Up means buyers are buying. Down means buyers are not buying. The sellers don’t matter. The buyers are important. The sellers are not. If no one shops at a store, what happens? It goes out of business.
What I look for is buyers buying. Specifically, I look at the lower wicks of 2 candles. There are only 2 candles that matter. The previous candle and the current candle. If price drops below the low of the previous candle, only 2 things can happen to price: 1) price remains below the low or 2) price rises back above the low. It doesn’t take anything other than your own two eyes to recognize if the buyers are buying or not. That’s why my charts look so sparse and boring. I rely on what price is doing. If price does not drop below the low of the previous candle, then the buyers are buying.
What to remember is price above previous low, buyers buying and price below previous low, buyers are not buying.
The end of the “sale” is not of importance. I have my daily limits for both gains and losses. When the loss limit is reached, trading ceases. When the gain limit is reached, protective stops are put into place. If the market continues to increase my profit, the stops get moved up.
Did I answer your questions?
Wasn’t that the question that was just answered?
What I look for is buyers buying. Specifically, I look at the lower wicks of 2 candles. There are only 2 candles that matter. The previous candle and the current candle. If price drops below the low of the previous candle, only 2 things can happen to price: 1) price remains below the low or 2) price rises back above the low. It doesn’t take anything other than your own two eyes to recognize if the buyers are buying or not. That’s why my charts look so sparse and boring. I rely on what price is doing. If price does not drop below the low of the previous candle, then the buyers are buying.
How can this be stated differently? If price is going up, the buyers are buying. If price goes down and comes back up, the buyers are buying. If price is not going down, the buyers are buying. If it appears that this is redundant and stating the obvious, it’s because it is stating what should be obvious when you look at the chart. Trading is “obviously” simple.