As I have always mentioned in my previous posts that When you trade Forex currencies then there is strong conviction should be seen in your trades and Most important one in "technical analysis" is trade with logic. "Supply and demand" works together in forex market as there is strong demand coming out on previous reference points and specially when that area is protected.
Few days back I mention that I am long Australian dollar and I have few reasons for that Please check my previous post of Australian dollar here
Check the updated chart of Australian Dollar
Price has reacted the same way as I have mentioned in my earlier post,as that Particular area was strong "Confluence" and price holds the higher prices after breakout as well .
When you have such scenarios, then price usually Gravitates to test the high or the supply areas(In strong or elongated trends), as It has done in that case. Strong selling followed by "accumulation", always tells us the reason why the price has paused and start going sideways and that should be good enough to give us second thought before we go short in such cases.
Specially If there is a breakout and traders often trapped by strong selling and start selling the rallies but logical trading tells you to wait and see before fading such breakouts And If demand level is already protected, then we should trade rotation center violations of false breakout after the daily range breakout to the opposite side.(Also Known as Responsive Breaks)
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