Paradigm Shift l Value Higher Again SD basics

Hi traders !
Here I am again putting lot of emphasis on Price and Value Distribution, Where I have again seen some momentum shift after Rangebound sessions extended i.e Usd/chf. Lot of time traders would think that price breakouts out of range in slow momentum trading is false and again look to short at Price extremes.

But Issue With Novice traders remain the same as they are not willing to accept what they see and Look to react looking historical support and resistance and Counter-trend moves.

But true fact of trading is Price is in strong trend and got rejected several times when it lean away from higher prices, But recent momentum look strong and Instead of remain in rangebound market conditions price has shift gears and approaching the multi-year high.

Price Action Pattern Explains

Chart above explained the Value of price and time and when it got rejected several times it does not take too much time to shift the value much higher and go through extremes which react as support or resistance. That's the truth of trading which often tells us the fact that every support and resistance has to broken some day or another and Its upto trader to react to those areas or just leave it to fade those areas as not all the areas of price has significant importance to market.

Does Trading supply and Demand still abstract You

If you like to know what is happening behind the scenes the the key is to develop a unique trading method. Don't look at candles or any other fibos on your screen as just red and green pictures and patterns as they are the expression of supply and demand.
Understanding true concepts will make all the difference in your Forex trading career. It will give you the ability to trade based on what the market is expressing through Price action. This resource can be useful to shift through the mountain of news and information that is produced every day and trade what you really see on the charts.

What Really Price Action Is

"What is Price Action?" is a question frequently asked by aspiring traders. This Post attempts to explain that there are no secrets when it comes to exploring the foot print of exchange rates across a chart. Nevertheless price action is more than just swing highs and swing lows. Rest assured this Post will not leave you in the dark and conclude some ever changing decisions that You need to make In you Forex Trading Techniques.

It’s easy to brush support and resistance analysis off as not important. Although obvious, this concept is rather abstract and requires some practice to be effectively used. Understanding a concept from a theoretical point of view is not synonymous with having integrated it into the practice. This section breaks down the dynamics of price action, and with the help of lots of charts, you will thoroughly understand this concept and learn how to trade with it. This new knowledge will make you see the charts with a new sense of objectivity and trade in a much more relaxed and proactive manner.

To be continued......

Role of Candlesticks In Overall Trend Prediction

Hi Traders,

Its being a busy week overall as We got some real setbacks for Euro Bulls, FOMC Tone was more of the same But ECB President Draghi really seems worried and drag Euro down once again, But thats not important Because I always back my Charts to see overall position of Strong holders who are most likely to drive the price.

Roll of Candlesticks in Overall Trend of Eur/usd chart

It was clear from the example above that most of the time in broader trend we have ranges and direction is not clear but overall bearish trend is good enough to pick entries from smaller time frames. Chart above is hourly chart and we have some ranges since last couple of days and price maintain a support where retail traders look to enter few times and scalp the market for few pips, but those who use careless approach in "Forex Market", then he or she has to pay at some time sooner or later and that was one of those days where strong money dominate and Euro Crash close to 1.10% decline which has not happened since quite a while.

Was strong holders were Driving the price up

Example above truly demonstrates the logic of Currency trading where we can say that IF that breakout to the upside was not result of Panic then why market liquidate immediately and although market react immediately next day but that has to be a part of some event or price usually gravitates to the high but breach of high after few attempts was not possible and hence market needs sometime to react and that reaction come prior to release of a Crucial event and all we need was to wait for breakouts and use logic if that was a pullback entry offered at the top of the range.
Rule of the thumb is never buy at the upside breakout and never sell at the downside breakout but that does not clear the fact that you always look to pick tops and bottoms but overall logic has something to do here where price made few attempts earlier to breach the top and was in sideways market and Overall picture was bearish.

Take a look at Usd/chf Chart which is Negatively Correlated With Euro

Here I have posted a chart of usd/chf which is negatively correlated and that chart I post on "Friday" as well, where I mention Value Migrates immediately and there was no stopping afterwards and If you watch at the bottom that if price was reversing then why it did not move exotically against the overall trend, which is in itself a great clue that market don't want to move away from higher prices and consolidate after every sell off and suddenly we see some buying interest and market try to breakout with early sign of buying which is exactly opposite of the charts I posted above of Eurodollar.

You still think Candlesticks plays any role in predicting the trend.

I am not denying the fact that candlesticks are important and they represents the activity of traders but If you do want to utilize it then use it with the overall picture and Use it on higher time frames where it truly signifies the overall picture and who remain in control for a particular week or day.

Concept of Advertising Mechanism

I hereby make this post to let everybody know How price use to trap traders with Spikes that fadeout and When ever price in strong trends fade away It use to get Rejected by Market and Lower prices are not accepted in any case.
Price Concept is all about "Advertising Mechanism", And When we really want to trade good throughout then we must understand the simple logic and If spike got fade out quickly, we should immediately leave the market and think of better price if there is any pullback offered after spike.
The chart I posted here of Usd/chf in which we have seen that price in very strong trend recently on H4 and Daily chart and On H1 chart which I think is the best way for swing as well as Intraday Traders to set the lowest stops possible, got rejected so many times from the low and When you watch the price closely then You will see that at every low Price founds strong buyers and at this time I will look to see the follow-through and would like to see price try to fade out the Price Action again and Traders got trapped by this behavior and try cover and We will see price got some new buyers and test the new high or even make a new high.

How to trade Ranges with Momentum Shift

Momentum Shift in Australian dollar Once Again

I have explained so many times on blog that I always focus on strong trends pullbacks specially when few spikes have been faded and don't have any follow-through. I have created a post On "How to trade Ranges With Shift in Momentum".

In the above Chart I have noticed that price of Australian Dollar is in strong trend followed by Few ranges and then spikes up and down and When most of the time we see this type of behavior in strong Downtrend then Most of the time market hesitates to buy in the "Weak" Market or When they are expecting a favor from banks too earlier than It is scheduled and When they don't get anything they expect price often pick up after breakouts and then after attempt failed it went in range and then again Breakouts often spike and get out of the range to put stops and that is why I have created such posts where we can find out what is happening and what to expect in such crucial time.
I would watching a failure at this area of range for few sessions and then If we again see shift in Momentum, then I would short and advice everybody here to remain in short positions ahead of 0.8675.