Supply and Demand Concept of Passive Sellers

Trading is all about opportunities and when you so much favoring in one direction then I don't think you need anything to go with that direction. Same is about the passive sellers concept. It often happens when we have seen trend is strong and Price go once and forth for whole day or even days and then we keep finding the support all the time and this activity is known as "Neutral Day".
Trading is all about buying low and sell high but this does not means that we should keep selling with upside breakout as it is very risky but when we have such strong trend followed by passive behavior by sellers then we should see the overall context about how buyer behave when a particular demand level is tested and that chart which I have posted below is a clear example that market is awaiting big news and small activity can turn to strong candles if it is favored as expected.

It is just an assumption as trading largely depends on large players and how they move the market and we just need to sit and watch the price action and trade accordingly.

How to Trade Breakouts And Fadeouts in Forex

Hi Viewers,

As it is clear from the Post Title that this post is about "How to trade breakouts and fadeouts", because its primarily responsibility of a trade to be well versed with all the technical portion of trading and "breakouts" is at the top of the list. As there are lot of reasons that we may or may not trade that breakouts, I would point out few of them that when you should look to trade or when you should leave those breakouts.

Failed Breakout

The first reason that you should avoid trading is failed breakout and then again looking to trade the opposite way where breakout happens. Failed breakouts is that when price breakout through a range where buyers and sellers battle seems to be at equal level and when price break from the range it retreats back to the range and then it is known as failed breakout. The main reason is to look for what is the overall trend and if that breakouts happen within the trend then the length of breakout candle or it is unusual volatility spike. It is know as failed breakout of the range. As I have mention in my last post that if a trend is matured enough and first sell-off offers pullback entries and the range breakout fails on the next candle then it is usually a trap offer by the bulls and One must think about going long as there are several reasons that trend will reverse. For those who did not look at my earlier post must consider to have a look at it here

Volatility Breakouts

Most of the readers of the blog might have been aware of this concept "Volatility Breakouts" which means unusual spikes out of the ranges also know as elongated candles. In this concept price action is very volatile either due to any unexpected event or lot of new cash fund inflows into the market or a single player or institution dominate the market price and It most of the time lacks momentum on next few candles and traders got trap into the range and when one see such unusual elongated candles out of the range then Price can roam around that candle for few session or even days and that type of candles often work as vaccum in the market and lot of sell stop or buy stop orders might be waiting on the top or below of the candles, So we should always avoid trading these type of Strong candles and wait for further price action specially when it happens on higher time frames as it almost impossible to calculate the risk on such strong breakouts.

From time to time I have posted on my blog that what type of breakouts we should consider taking and type of breakout we should avoid but from know on I would post on weekends of possible setups that we should consider taking a trade if or not that breakout might succeed. I would urge all my readers that they subscribe the blog for every updates as they will receive all the updates through mail in to their box.

Swing trading -- How to trade mature trrends Or Reversals

Hi traders,

Its quite a while since I have posted an example of "How to trade Mature trends", and recent I have manage to give you best example of the lost and that is Usd/cad. Time frame is hourly and trend is very strong and we have seen possible "accumulation",Prior to start of trend. Then we have seen strong Higher highs and then resumption of trend and we can't go short without and strong sell-off or any strong pattern.

Because of the fact whenever an opportunity arrives in strong trend to trade reversal then it comes quickly and gives you no time to enter and we need strong IQ level to spot and trade such reversals and we should not be confused and understand and read the situation pretty well.

As we have seen in the above chart that price has already looking for space to reverse and trade who trade breakouts look for pullback entries in such strong trend look to cover quickly after breakout of the low range. But price always give clues when it is about to reverse and that is what we need to spot. We don't need to complicate trading as we need to sort out few things to trade as I have used RSI to filter where we can that it was in the neutral area and declining and capped by a falling trendline but I only use RSI as filter and all the trade was based on Context which give us final clue when we see a strong bullish Engulfing at the top of the range and failure by couple of dozi candles after that Bullish Pattern.

Define Value in currency trading and How to spot it

Hi Viewers, Seems like there is no panic in Aud/jpy bulls and finally they have given up but this does not means that we should short the pair immediately because they can take hold any time and we need to remain active and conscious.

Nevertheless its been a good month so far and We have got weekend and month end together, so need to sumup few good things and time for learning has started once again.Holiday season is now gone and few panics in the currency worlds seems to be clearing up. So during the remaining time of the week and in the next week I would clear help you all to understand what is "Value" and How we trade value and I would clear all the important "Indicators" in determining the value and How we need to spot such opportunities and what is it importance in continuation and pause trends.

So, keep checking the blog from time to time till I update the blog with seem live charts and videos and help you defining the backbone of Price action with some good candles traps and setups.

As I have explained earlier in my blog about the value that value is the most important factor need to be considered in strong trends and rallies to the opposite direction are the biggest traps for fresh longs or new money to be introduced by strong holders. Recent example below is the biggest one for the trend to resume or the shift in Value as We have seen large consolidation followed by trap to the downside. As you see in the chart that there is no strong rallies to the downside and the one that has been was followed by even strong flow or attack by bulls.

You need to notice that after rejection price has move with no hesitation and this often happens with Shift as there are some strong movers that have come in and ready to move the price biggest way and consolidation prior was a strong set of "Accumulation" or example of buying with every rally to the downside.

You might notice that I have used bollinger bands and RSI in this chart which I hardly use in my Price Action strategy, but when it does help you and You use them to sort out the trade and has no hesitation then there you have every reason to use them. As You see in RSI price moved in the overbought conditions as that candle is very strong and moved out of Bollinger upper band when price moved from below and the candles is in itself a large candle and Price has moved out of bollinger upper band We should immediately buy the price with the move as this type of moves move price for atleast on the particular day(on hourly chat) when it happens.

How to trade Supply and demand imbalance in Forex

I have talk about this numerous time on my blog and I would keep you updated wit more examples this month that what is imbalance and we trade it.

Currently we can see usd/chf chart which is very volatile and we are watching it since the last SNB meething and Now I am keeping an eye of 0.8843 area which is very crucial pattern builder on h1 pattern and we see slowly but surely accumulation on that chart time frame and If price fall again and test 0.8840 area and rise, then it is a perfect area to buy and keep holding the price till supply hit the market again and we could see nice profit coming in.

Trading is all about opportunities and how strong money reacting in the market and while we can analyze these type of opportunities then we can make much more than we first had targeted or anticipated. Trading does no harm till the time we are in control of our activities but If you use excess leverage for sake of making up for our losses then you can get away with it few times but most of the time you will face lot of trouble.

I will update the hourly chart if I see the same activity as I have explained in this article and I would really be more than happy to assist and get in to this trade.