Paradigm Shift l Value Higher Again SD basics

Hi traders !
Here I am again putting lot of emphasis on Price and Value Distribution, Where I have again seen some momentum shift after Rangebound sessions extended i.e Usd/chf. Lot of time traders would think that price breakouts out of range in slow momentum trading is false and again look to short at Price extremes.

But Issue With Novice traders remain the same as they are not willing to accept what they see and Look to react looking historical support and resistance and Counter-trend moves.

But true fact of trading is Price is in strong trend and got rejected several times when it lean away from higher prices, But recent momentum look strong and Instead of remain in rangebound market conditions price has shift gears and approaching the multi-year high.

Price Action Pattern Explains

Chart above explained the Value of price and time and when it got rejected several times it does not take too much time to shift the value much higher and go through extremes which react as support or resistance. That's the truth of trading which often tells us the fact that every support and resistance has to broken some day or another and Its upto trader to react to those areas or just leave it to fade those areas as not all the areas of price has significant importance to market.

Type of Breaks In currency Trading

I have explained in my earlier posts that I would try to cover most of the aspects in trading and Which can help us in determining the various Institution activity and when we see strong breakouts then we should see the background whether there is any entry to be offered by market makers, And Breaksoften give us clue which way price would go after such strong momentum.

Initiative,Liquidation and Responsive Breaks.

If You see such strong Initiative Breakouts which are followed by ranges at the bottom then this is know as Initiative Break, And when such breaks followed by immediate sell-off, then it give us clue that this market is driven by fear or some news release and Liquidation was a part of that release. But If you found the daily range and during the final hours of day close we saw strong breaks to the range to the upside or downside, Then It is know as Responsive Break

Most of the times when we see such activity, the after scanning all the activity we see momentum comes again and drives the price and momentum came again from lows to the upside and that momentum is strong then we should feel confident that earlier "Responsive Break", was a trap and price will be driven strongly to the upside as market as "Accumulated", whatever supply it holds and then value again shifts to the upside and price is drive more strongly.

For more help please check this update of usd chf chart