Hi Traders,
Why I always love trading currencies than stock or future trading, because currency trading is the best way to predict the predetermined moves to levels as it is very easy to spot increasing demand.
Same rules are used to spot absorbing supply but there are different way we can use How price accumulate and How it is distributed. I will cover those two methods in my posts in coming days and weeks.
Chart that I have posted above is a perfect example of Rising demand as we have witness some weak rally to demand as Price use to Compress twice while it test the demand level and most importantly the spikes out of that demand area after few attempts at supply fail.
Price not willing to fall as downside rally unfold
As you see in the chart that downside rally are slow to unfold and upside rally are more powerful and also price rise most often when it test the area and last spike from that areas was the most powerful and price really carry that spike to break above the supply area. Giving us lot of Intraday opportunities to go long as price establish new demand areas below that last spike.
