Buyers are not buying the gbpusd. How do I know? Price failed to exceed the last week’s high. Price is below last week’s open. Price is testing last week’s low and is below the weekly low 2 weeks ago. And to think no indicators were needed to see that.
This is not a prediction. No one can predict what will happen next with 100% certainty. Of utmost importance is observing what is happening and identifying it correctly. The question I answer is, “What are the buyers doing?”
In speaking and in trading, one should strive to be precise. “Keeping it simple” is one of those sayings that gets repeated often yet is rarely practiced. Search the forum for “keeping it simple” methods and you will find methods using multiple charts with convoluted rules that are often contradictory. Yet these geniuses don’t have a clue as to the nature of trading. But traders can’t help themselves. Their brains work against them:
There are three markets or sessions: Asian, London and New York. You can approximate these sessions using the H4 candle chart. There is a sessions indicator to highlight the background of each session.
I ask what did the buyers do in the last session that ended and what are the buyers doing in the current session. Do not confuse this with those who believe in the “time frame myth”. If I am trading in the Asian session, I want to know what the New York and London buyers did. If I am trading the New York session, I want to know what the Asian and London buyers did. The main question to ask is, “Are the current session buyers willing to pay more than the previous session buyers?” If they are, then price is going up.
Why is the tail being smaller then the body important?
John
Waiting is not the goal, but may be a necessary stage in attaining the goal. We wait for what is worth waiting for, and in the process learn patience. (Prayer by Philip Yancey)
It is Thanksgiving and I am watching football. The offense tries to move the ball down the field to score. The defense tries to prevent the offensive from scoring.
A bear[red] candle body that is longer than the tail implies the sellers pushed the buyers more than the buyers pushed the sellers. See chart above.
A bull[green] candle body that is longer than the wick implies the buyers pushed the sellers more than the sellers pushed the buyers .
Buyers must be waiting
Buyers decided the price was right when it got below 127.00
There was a run all the way back to 129.00
No bargains for gbpusd buyers today.
The buyers preferred EUR over USD even thought the eurusd was not “on sale”.
You have to use a monthly chart to find the last time usdjpy was “discounted” this much
How will the buyers react?
