I have discussed a lot about "elongated candles" which forms a "rotation center" as and protect any rally against these candles and forms a rotation area, Price squeeze to test the high or low again and sometime go beyond the extremes. I would put more light to that topic soon and cover some trades as there is lot of strong trend which has been pause for quite a while and market preparing for next moves possibly reversals. But it is quite optimistic to predict it too early but recent candles in Pound chart, hinting it could test the strong support.
Will post a chart soon If I found something lethal in the days to come and cover this topic with strong examples.
As Promised, here is gold chart updated with possible outcomes
This chart is a prime example of "Elongated candles often works as vaccum in the market, and As we have seen some good strong bullish candles at support which 61.8% of Fibonacci ratio, which wave traders used for wave ii or wave iv correction, was a clear trap and price fall rapidly.
But in such case when price end the month on lows and after such behavior If you see any consolidation (As in case of Euro Recently) you should wait for price to rise to sell rallies rather than just selling with the breakouts as such breakouts often offers good low price buying and test of high of consolidation area or high of the swing, so we would wait for any confirmation in such case to sell the rally specially when we see patterns that don't followed by follow throughs to sell the rallies, Will update the blog if found some substantial.
