Showing posts with label Liquidation. Show all posts
Showing posts with label Liquidation. Show all posts

Tuesday, September 09, 2014

Australian dollar Update.

How to point overbought conditions In the currency Trading First Of all I would like you to take a look at My earlier Post Here

As We can see from the background that we have given so much clues what price does when it reach new extreme and With strong swing it get the attention of "Price Action" traders that we should Buy On "dips", which often is not the case. Market makers don't react the same as we "Retail Traders" expected, they look to eye strong releases and sentiment to trigger the entry.

Although I was Not expecting the price to go that Higher as it would take out stops but after price open up on Monday and that is with Gap and that was good enough to short at another failure at new extreme after strong "bullish engulfing trap"

Take a look at Updated Chart of Australian Dollar

In this chart, I have mentioned few crucial points at where price was expected to reverse and that is the most expected area at "New Extreme" and that is what exactly has happened. And when such activity has happened You just expect large liquidation move without correction and even if it offers correction It would have been offering better entries.

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