Australian Dollar Update Imbalance Spotted

Hi, I have just recently discuss about Imbalance and then came up weekly chart of Euro Dollar

Australian dollar levels and spotted Imbalance

Australian dollar weekly chart has spotted a beautiful area of Imbalance and we have just recently open shorts from 77 cents area and that tells us that we can really get a ride untill price finds another support to rally counter trend and rally against the main trend.

What is Imbalance and How to define a trend with its help

Its really being a point of concern to How to find a trend and How to maintain a discipline and look to bring some consistency in Trading. Well, this article is just going to help you find some crucial areas on weekly chart where you can afford to risk a certain amount of money and can really find a point where you can really enjoy your entry point and bag good risk reward ratio.

Example of Imbalance In Euro Weekly Chart

Now, we discuss what is Imbalance. Imbalance is what create trends and balance creates ranges between buyers and sellers. Now you might has idea what is Imbalance. Imbalance from a point to another point could be rallying and rejecting untill we find another level where strong buyers of sellers hunting for taking their profits and setting up for next moves.
As It is stated in the chart that Market start a new trend from high and fall sharply untill it found a support but then every rally is followed by sharp rally in the opposite direction and that is strong point we need to know.

Point is that we have to find an area where market start a new trend and rally against and then create a Imabalance which could be tested in future and resume the larger trend which is short term bullish and that's what has happened exactly.

Decision Points In Trading

Welcome Traders

The point and topic of discussion today is How we find "Decision Points", in Forex. We all know that this currency market is driven by fear and we have some strong decision points which tells you about the history and price respect those areas and Market use to trap after collection Breakout Buying or selling orders. But the point here is how we can pinpoint those areas where market has taken a final decision and look to rally.

Decision Point taken In Gbp/usd Chart

Chart above shows us that Decision was taken after strong rally from bottom but it was taken at a very crucial resistance which had already cap the market

There was real chances that market fade away from this Breakout But demand was very strong and it rise from Historic Lows(Strong point as Historic Lows could be target of current rally)

Market could still easy fade away and start falling in the direction it was falling earlier and resume the trend but that decision was strong and market really ignore that in the first attempt and consumed the supply in the second

Market use to pause at crucial resistance making room for next moves or just sit here for days or even weeks but As I told you decision was made to breakout and when you see such breakouts after strong capped areas You need to start watching the charts as I mention in the text on chart.

Usd/cad at crucial resistance l Strong Reason for rejection

I will surely be trading this Usd/cad possible reversal which could give us seriously pips if reverse from this range-bound breakout and reacting to levels.

Because of the facts we have upper supply box at the top of price action and we have some strong Fakeout Bars which is still the strong supply to breach but the below separation point is strong enough to react to the lower boundaries marked and If My projection is right we could see a strong bearish momentum to reach the lower low and breach and strong bull trend could reverse completely.

I have market all the strong points on charts and this could lead to a very low risk entry but still we need confirmation and I would like to see one more test of the strong demand and then I will trade if price manage to breach that area and reverse to test the resistance once again giving me confirmation that price is  coming back to take the buy orders.

How I pick Short term Top in Euro

Euro Reversal Chart

Hi, It has been quite a while since I have explained the technical portion of How I Pick short to medium term reversals with relation to Background.

Today I picked up a classic Euro reversal chart, Although I pick that chart up yesterday for entry but I was waiting for strong rallies through demand levels as It already happened once but today was the day for me to enjoy the free falling Euro.
As a trader one must show patience to this type of scenarios as there is always short covering in strong downtrends and Once you saw new trend maturing then You must raise your hands and have enough experience to pick your part of profits.

Picking up tops and bottoms rely totally on what background and prior price action telling you and what are crucial levels and How price behaves at those levels as Most of the strong moves faded out quickly if trend is about to resume and ignore those moves quickly.

I never favor going short at top and long at bottom untill I see few failures in the trend prior to recent Price Action. But If you can't buy low and sell high and always wait for a pullback then You must think again what are the chances that you get good risk reward and How you can increase your profit factor, Even If you are making money consistently.

Euro is the most traded currency throughout the world and all the banks have reserves to buy and get a chance to sell at higher prices and supply and demand just give you hint when they looking to sell.

Dollar enjoy the ride against all G10 Currencies today, It often happens with strong trends as we just need a glimpse of triggering and Euro pause was also strong clue that market is expecting too much out of Economic data which did not met the expectations and hence price reverses.

With strong hints of matured trends(one must go through the blog to see How to trade mature trends) we must wait for this type of day when lot of bank officials are due to speak and present their views on economies and give us hints of the things to come in the coming weeks or months as It often resume the earlier strong trends or give us a strong opportunity to trade pullbacks at higher or low prices.

Institutions and banks always obliged and triggered as they always look to sell when they don't see things improving in coming days and that is why avoiding lot of indicators can give you exact entry price as they often react late when trend is finished and has very little to offer and that is why I always look to react at importnat levels.