How to trade Break-Away Gap

In this post I would try to cover One way to trade the "Gap" In currencies. And this is the point which I have never covered in my previous blog posts But I never sight any such activity.

SO, When I was today after opening I saw correctional bottom and price reverses away with break away Gap and One important thing it done was test the broken level with the same candle and price never stops after that.

There are lot of other ways to trade "GAPS", But there has to be true logic behind the price action, which can guide you through the previous day activity, which in this case was neutral after strong selling. One more logic was that previous swing makes continuous higher highs and price bounce of the demand zone was good enough in this case and "Break-Away GAP" fulfill the rest of the requirements in this case. Most of the traders look and wait for the gap to be filled but not in such case where price went further away from GAP.

Usd/cad Intraday Outlook based on Price Action

Ahead of very choppy session in panic trading Eur/usd give away all the gains and that has happened thrice in this week, So far my bias for Eur/usd is neutral to bearish ahead of FOMC Meeting next week.

I will post the usd/cad chart, which is more likely to move today with some good strong manufacturing data about to release.

Chart of Usd/cad will be posted later in the day

Overbought and Oversold Market Real Terms

I have cover most of the points of "Price Action" in my blog. But I would like to put more thoughts in new Trader's mind that what is overbought and oversold market and recent with Recent example. Being "Overbought and Oversold" is not When an oscillator give you some reading above or below the predetermined values set by trader. But overbought and oversold situations are created by Market movers like "Institutions". And they often end up the traps and then Market Liquidation breaks is confirmed after that momentum which comes in late after first part of the move.

See the chart of Gbp/usd I have mentioned below with Recent Price Activity

I will more on that topic in the days to come because it is so necessary to confirm all the points before we need to take a look at these type of traps and not to use that setups and try to analyse every market as "Overbought" and "Oversold" Market.

Are we Seeing Shift In Value ? Price Action Basics

Update Chart of usd/chf Prior to European Open

I was unable to update the blog for last few days,then opportuniites were quite rare. But I have come up with another chart where I have seen Another Possible
"Shift In Value", in usd/chf chart. If You watch the chart closely, then there are multiple signs of buying at low levels after recent shift in value marked by Blue Rectangle.

After that We have seen some netural days and some passive seller move the price down but every-time we see that shift to the downside, buyers step in and move the price with strong demand again to the upside, And the Values is again shifted to upside and watch if the top is taken out, but as long as high is not taken out, we can see another failure But as Price is moving ahead with strong force we see of another test of hot-spot area which as it has done twice, and possible go beyond that area this time.

Moment I saw that chart today, I was wandering If an opportunity waiting on the sidelines and Is it would be worth to watch that price line today with Asian session could be crucial one And "Zew-Economic- Data" From Europe about to release later today and any strong deviation could really lift the price of Euro and its counterparts.

It is really worth it to take a lot at different setups when you trade "Supply and demand" with the help of past few days trading activity.

Trade gbp/chf My last week best trade setup

Here is update of trade gbp/chf chart with Explanation

As I mentioned in my previous chart examples that I love to trade this type failure attempts and when price get strong demand from a level after building and spending so much time near the highs and when price falls it gets good protection.

So, for me it was two trades both long at first attempt of development area, and second it was short after the attempt failed to test the high's and when it is clear that earlier attempt was "Momentum candle" Inner space Rotation, and confluence or double bottom, the second pattern trap give me strong confidence that this is yet another classic trade example and patience really pays when you can trade these type of logical trade setups.