Thursday, September 11, 2014

How to spot Imbalance in strong trends

How to trade strong trends with Imabalance

As I have continuously mentioned in my previous posts that "Imbalance is what creates trends and balance create ranges", And When We have seen such strong trends like the one we have seen after the end of correctional trend in usd/jpy, We have to filter our entries.

In this chart I have clearly stated that "Neutral day" activity where we have seen such strong behavior after false breakout on neutral day and there was minor development area, which was left behind after momentum finally take place and we have to look for tight stops in such cases as price usually don't come back if We manage to find out continuation of the trend.

Example of the chart usd/jpy

Clearly I have identified the opportunity and spotted out trade location in such cases which is the important point that we have seen some ranges and then finally we have seen some momentum picking up and we have finally manage to collect some pips although my entry came earlier at 106.38, Because I use to spot out such activity earlier and specially when I only target strong trends and some policy moves which makes a good combination, although it is not easy but stops was not very far away from my entry and will cover quickly if risk again hit the market as it is the case driving riskier assets like aussie, kiwi and usd/jpy counters.

Tuesday, September 09, 2014

Forex Trading Strategies l Overbought and oversold market conditions Bas...

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.

Sunday, September 07, 2014

Forex Trading Strategies l Beginners Price Action Based On Supply and De...

Value shifts Supply accumulated and Trend continues

When Market go against the strong Money

First Of all I would like you to see my earlier Post

Updated chart of Aud/Cad

I mention last week about the chart aud/cad and its momentum after testing the low of 1.0120 and then It continues to shift the momentum higher, Price often reacts strongly when it goes against the strong buyers or strong money.

In this chart we have seen, Possible accumulation and then breakout and Imbalance which carries the momentum through out a day which was neutral day and after than we have seen only momentum candles and Price holding the higher prices. And Now if we again see the shift in Value and Momentum we have some strong protection area with strong background and that is what we should always be eye when market goes against the strong holders.