Price Action Strategies for Beginners l Trading Reversals And Rejections

Hi!
Blog has not updated since last few days, the reason was end of the months and lot of action and also my busy trading schedule.
There has been lot of talk around of ECB Stimulus and momentum again shift towards the US rate hike after the tremendous and healthy NFP report, which has given new hopes to US population to see the first rate hike in about more than a decade.

I am really in favor of rate hike because since US decide to end stimulus and bond buying program the only reason that they don't lift-of was unemployment and housing market and both of them has decent or say excellent recovery and now the Yellen and Fed members has not too many things to think about and coming Christmas would prove to be the gift of Rate hike.

Now, I would like to tell you that I have just recently decide to put some charts on board, which has really moved a lot out of large consolidation and given new opportunities to everyone but those who still looking for another technique may be still for methods that they can adopt to give kick start to their trading which has not happen for them in years.

Ignore Demand Scenarios and Price Action Basics

In the chart below, gbp/usd has shown us the big way we should approach a technical chart and we don't need to put any Indicator on the board, to succeed and to see why Price behave in such a way which can give us some idea how price use to behave violently when it revisits such areas.

Take a look at the chart Below

This chart has everything, whether you talk about Ignored Demand and retest after buy orders and If You want to trade support and resistance there was flip at lower high and then decision made again and You do get a clue that If there is lot of supply in the market market does not really wait for a pause and recent drop in Sterling is 550 pip drop and from decision it has already drop 250+ pips.

But what was crucial for me, a clue prior to release of NFP which means BOE policy decision was most important and single currency pair need local or individual guidance more than it depends on relative cross which was in this case and that is a big lesson for traders who like to trade only dollar and concern about what is happening with another global economies and that is why usd/jpy moves a lot when NFP data released.

Trade Currencies Like a pro

I will Try and Update the Chart Later.

Possibly I would update another  chart to trade prior to release of FOMC Meeting Minutes On Wednesday.

Trade Safe

New video of the Series l How to define Price Action Zone

This is the new video of the series and video of just I have just posted with my previous article. This will you give better idea in understanding the whole concept and visualize those areas which are of high importance and on which whole trading has been based.

How to Trade Buyers Trap In Forex l Institutional Supply and Demand Concept

Here I have built up a strong article and chart where We can spot the strong Institutions behavior . Specially where we have seen strong Institutions and smart money behavior.

There is not denying the fact that some areas are of utmost importance and when those areas hold there has to be a strong logic or meaning of price breaking or faking the zone. In such cases, we should watch the behavior with second test and consumption of supply and demand.

This Chart clearly is an example of that trading is not a science, it is an art which can be master by strong conviction and dedication in understanding what Charts are trying to tell not what other factors or factor that decided the nature of price action Movement.

Price Action itself is a term defined for reaction to a particular zone, It is not a combination of several candle or candles, where we see pinbars or set of rejection candles fitting well into context then we must see strong decisions based on the after the rejection happen.

In this chart in itself, we see some strong rallies which complete ignored and when such rallies are ignored, there are strong set of pending orders or buckets remain unfilled, and when price retest it again and that rejection is strong then opposite demand of supply is tested and when it got faked then there is reaction that is needed at the supply and that is what exactly makes me a chart lover, when everything happens with such strong synchronization.


Take a look at the chart first,

Where we can spot such behavior, we should first see how price behaves price completely turned from the zone, and when price tries to retest does it clear all demand buckets, the answer is yes, because strong demand off the bottom is tested and fakeout . The last point is rejection and it itself is a strong one, which should be the point of real concern when it faked out the high previously and recent swing high.

S/R Flips helps in Decision Making

We have seen lot of consolidation ahead of ECB Policy decisions and price holding crucial support prior to the release but what happen was the strong bearish price action unfolds and that happens when we seen demand hold and  Consumed whatever demand there was and followed by strong sell-off

Chart will give you better idea what I am trying to mention in that article.

I will update with more charts matching the context and tell you How price action unfolds prior to that strong sell-off after there was rejection at the top.