Are we seeing another attempt before ECB decision

USD/CHF Intra-day Technical update . Are we seeing another rally

There are some things that mostly day-traders do and rarely (if not never) other time-frame traders do. As an example - reaction on short-term reference points.

Price action indicates - what market does right now, but we need to know not only that, but - what to expect from the market? What can we anticipate?

While we analyze any chart, we first rely on the recent price action and rely on reference points, which are short term location where price lean after break out, Candlesticks chart or support and resistance traps are quite often ( I don't think that there are any such strong and resistance area as there are extremes and rejection areas and it is important for us to know how market react after breakouts)

With candlesticks, I don't trust any patterns as there are often strong breakouts are followed by reversals,Big buyers used Candlesticks against the strong trend to reverse the price for liquidation purpose and to trap the traders who don't know what is "Context" and what market tells you to do after such a candle appears and price did not follow through or pause for few sessions.

usd/jpy strong accumulation period after breakout

usd/jpy Intraday update . Are we looking at culmination ?

The reason I was concerned with this trade, because there are not too many times price has lean near those high prices and downside price action was rejecting from low prices.

To spot «weak holders» activity, let’s think – what levels will be not interesting for big money buyers/sellers?

They are – sessional highs/lows, previous days highs/lows.

We see some participation from level above and price freezes near level below. If it reverses from this point, probably it will be a sign of day-traders purchasing there.

Big money players are not interested in that levels – they don’t attract enough volume for them(Like the one I mentioned where are set my stops), Big money buyer will rather act inside of consolidation, because he needs volume to execute his position. (They rarely react at daily price extremes) Now if you have two attempts from day-traders to play long and to play short, you may want to see – what group is going to earn money.

If sellers will have good prices to exit (prices will breakout to the downside quickly), then probably market is driven more by strong (professional) supply there, if day-trading buyers will win, then some strong (professional) demand is there and helps them.

Usd/chf real time update.

As I mentioned in my previous posts that trading is advertising mechanism and we have seen this in the pair when Institutional money is continously buying at low levels, For those who did not follow my previous post check it here !

Price action does give us hints of buying

In this chart we have seen some strong trend breakouts and recent breakout we have two scenarios, One price after second breakout was holding higher prices and when we have few neutral activity days and if that strong holders, which it was, will test the low and shift in value and then they start buying again with even more force.

If Our assumption is correct price will break the barrier and will make a new high and that should not enough as we would start covering our position if we see any such activity.

Demand and supply are very crucial aspect of trading and when price is in strong swing it gives us an entry to renter at pullback but we must consider a thought that why such entry is offered, and any logic behind offering such entry.

When we have good solid background which tell us that buying activity was there even while correction and any such area which has hold before could be a good clue of price will advertise higher again and even with strong force that it was done earlier,

usd chf update basis on the recent price action

I have continously mentioned in my posts that we should look to find out "context" which is highly important in deciding the faith of a trader and the next predicted Move .

This type of trading give you an edge over other "mechanical systems" where the focus is totally shifted on any predetermined indicator's value.

The reason I have mentioned before putting an update is because pattern was repeated in "sterling" chart, I mentioned last time I update the blog. Sign of "strength" is always when we see "accumulation" at the lows and then we saw breakouts followed by protected levels.

but when we see continuous highs and and Price holding higher prices, the it is totally could be the case of "accumulation" on the moving markets and Friday we have seen buying at low levels as well.

Update of franc chart tells us another move could be strong

I have mentioned all the important factors in this chart, which could lead to strong moves and I have not mentioned any support because there is not a sign of strong liquiation and that is in itself a sign of extreme strength, but one should not see panic in the mind of traders otherwise that imbalance that has been created would disappear,

Little update on the chart as I discuss earlier , recent activity does tell us that price is still moving in the accumulation period and any strong selling here and momentum arrives again then we should fade that liquidation.

Check the update chart !

does candlesticks pattern is the only way to locate trades

Here, I would really feel sorry for those who look to relying on base candlesticks patterns to find trade location (even though they have importance but overall context is necessary).

Sometime we try trading those patterns with small stops in rangebound or trending markets but they have least importance while price is ranges.

There are two type of basic rules in trading when you trade and one of them is breakout and other one is fading the breakout and candlesticks patterns plays an important role which breakouts are there to trade and which one are to fade out.

Candlesticks charts are least important pattern in trend recognition

I have post a chart of pound where I have discussed all the important factor to how to trade a reversal . There are few points I have clear that even though prior accumulation and strength of trend was immense but it takes a day to reversal to happen and that is what we all needed to look out for such patterns for an Intraday trade.

We have few basic bullish engulfing patterns, one at the top of the chart and other one happened just today followed by strong selling.

Just take a look at the chart below !