Profit taking at supply area as It holds In eur/nzd

First take a look the post Which I posted This weekend click here

Price opened up with a big downside gap which was quite elongated in this type of scenario and should be ignored in overall context. But the most important part was that price found strong momentum off the lows when it test the breakout area or Minor development area (which was same in this case) as it rarely happens . There was long sideways movement for a complete day but it protect the earlier lows which is a good sign of price finally test the supply at 1.5694.

Take a look at the updated chart of Eur/nzd

While we built any Forex trading system Or read any Forex books or even look out for Forex forums, the Most Important part is missing piece of logic. While driving a trade or carrying forward a confidence One should be aware of all these logical facts which drives the market and We should be quick to get in and get out if situation opposes. And that is why Price Action Trading has an edge over Any mechanical systems using Bollinger bands, RSI or Any other advance level of Indicators.

Education Forex Trading for begineers Price action Supply And Demand Im...

Price Action Basics How to scan the whole actiivty.

Forex Intra-day strategies Should Include enough logic that you can scan multi pairs at a given time, because it gives you the idea to trade Forex According to your strengths and scanning multiple Pairs gives you that benefit.

In my View If you trade only few pairs then you try to force the issues to enter forcefully when there is not even a single clue of what is happening and Outlook seems to be Neutral According you Trading Plan.

See the Gbp/cad Chart Scanning Friday Activity

The chart of Gbp/cad tells us that When we have primary breakouts then we should look for Price Behavior as I have mentioned in my earlier post. I strongly believe when after breakout price consolidates for much longer time then it means the price has fade out the momentum and that is a type of activity that is happening in Currencies market to trap traders.

But after we see minor development and when it is tested it found more "aggressive volumes" and we see violation and another breakout, then it give us hint that in future there is a big chance that this area will be protect (If it is tested) as background tells us enough accumulation and then buying could be distributed in whole trading range which could be the case.

when price test that area we found strong "demand" and We need to be quick to enter and should be aware "How to cover quickly" with small loss if momentum fade out again but chance of probability that such trade will succeed is more than 50% which should be good enough for a trader to enter as compare to low probability or use of any mechanical system.

Primary Breakout with Minor development Area

As, I have mentioned in my posts that we should be looking to trade primary breakouts and See If that Breakout will succeed or will fade out the price action. When we line trade for Intraday technicals then this type of forex strategies you should be rely upon that have real logic. we should depend on clues when we see such behavior Like the "Passive Behavior of Sellers After Breakout", "Minor Development Area", "Rotation Center Violation" and neutral days after breakout as these are good clues that whether strong buyers are behind the breakout of it just a retail trader activity.

One thing I always relies on when price behave after testing the Minor development area and It has built some reference point on neutral days, But activity should happened within the next day or two otherwise we could soon see market Liquidate. Chart above is the example of Eur/nzd pair when market has made a primary breakout and we should rely on such trade locations after such activity has happened.

Now If that breakout is not made by strong holders then it will liquidate or Reverse pretty soon But I have strong clues that market will unlikely revisit that Minor development area Or If it did then it will find more buyers and They mark the price again up and trend will resume.

So,the idea post such charts that When we develop as a trader and Start learning everything that drive the market then we should always look to have such Intraday or Swing trading strategies that have logic and reasons to enter or exit should be strong rather than Looking for Indicators to give you clues above "Overbought" or "Oversold" conditions or "Divergence" Which Hardly helps to grow you confidence and profits

Education Price Action Basics Part 2 Supply And Demand Locations