Euro usd might face rejection near 1.2036 Banks & institutions capped rallies & drops

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I would like to see more Price action to unfold if we see a test of 1.2040 as failure. Price really capped between two zones 1.1650 to 1.2040 & if get entries both ways then I would surely look to post an update.

Price action zones and swings are very clear

Forex patterns & principles to profit from Market

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Understand the Forex market profile & its structure

Trading is not a science as there are people above everyone controlling the market. Banks & institutions share and hint signals where they are manipulating. Session start with manipulation and end witg short term trend and next session look for entries which can fall back to previous session lows or continuation if it is tested the previous highs or lows.

For me, As a scalper m5 chart is as important as trading monthly chart. Trading in the zone tells the story that you need to be good enough to match synchronzation in between time frames. Monthly rejections or trend can set limits for weeks and even months but as there are mostly consolidation after big moves you need to fine tune lower time frames for better understanding.

Same can be said for hourly and m5 time frames and if you know where institutions and banks put their limit orders on then probably you don't need any other hint to trade in the zone.

One best thing you can do is to stay versatile and don't ever look to trade same pairs over a period of time as banks and institutions target different pairs everyday. If there is a strong  sell-off seen in yen today, then probably they can target franc or canadian dollar as they don't ever put easy money on table.

As of 21st November, I've witness strong selling of franc after japanese yen buying seen on friday & Draghi drama on Monday, Markets have taken a breather and look to continue with different choice and manipulation can be seen in franc crosses specially in Gbp/chf.

If you understand the market profile & behavior and struggle with direction bias in Forex trading, then I would recommend you to leave the chart reading for few days & start looking to prepare notes on different market behaviours on different crosses.

Starting from Asian session to London close   note down activity for couple of weeks on which pairs follow the trend that started on Asian and how many times you see market continue the trend on the following day

Leave you with the thoughts of.buying gbp/chf around 1.3140 and carry the trade till close and if you missed it somehow, then wait for new york trappers to try and reverse it at yesterday's high and buy the patterns after rejections or look for counter trade on other franc crosses.

Risk management and quality of trades depends on how you time your trade

Trading is not only about entries  as it depends on how you manage your risk. There are several entries are always on offer but do we need to take or consider all of them even as to practice or check trades ?

Understanding price action is way beyond making consistent profit. You can analyze multi pairs at a time to make best use of the entries on offer but we must think of the risk we are taking on so called cherry trades. There is no doubt that big players, banks and institutions manipulate traders as they can push the price in any direction but as a retail trader we must accept the fact that our trading activity should be limited considering the fact play a waiting game.

-As far as my trading is concerned, I usually don't trade too often as I don't have to but if there is a reward of 15-20 times of the risk and reaction don't let me wait for weeks for choppiness then I always put the foot on the paddle. Higher time frames does help but if even they are looking direction then I don't bother to look at daily activity.

-Forex trading is somewhat different in a way that it can move in a week from downtrend to uptrend but as we know market trends 30% of the time and we have to take decision that when we enter market trends should resume or keep moving the way it was earlier.

Daily time frame is good area to watch as I told.in my previous post. Price action does require fuel to trend and there are some late entries when targets are reached and happens stop hunting before  another big players resume the trend and this type of activity is usually done within a month.

What is Price Action ? Multiple time frames Top Down Analysis

 Its has been quite a dialema that what price action. Is it a self-emphasis trader's curse. Trading price action is something like analyzing top to middle level management and then the quality of the product itself telling the story.

Understanding top down analysis from reaction on timeframes 

Top to down analyzation is meant by looking at monthly chart to see who is in control and looking to weekly determines the strength of the recent moves and daily is very good for entry level and nothing below that I have ever traded nor recommended.

Daily time frames downtrend or uptrend is most of the times is temporary as 22 daily candles consists of one monthly candle and imagine a powerful uptrend or downtrend on daily finish as a dozi candle on monthly.

We make things complicated by day trading isn't we ? I hereby will help you understand the top to down trading analysis filtering the quality of trades that we must take.

As you see in the chart above,weekly trend is up. Several higher highs followed by fail to make a new low. Rejection at trendline tells us that price will probably look to pick up strength soon atleast on lower time frames.But still there has to be a reason to catch the reaction with entry which offers good reward. I still expect price to make a new high soon above 1.7600.

Lets look on lower time frame

Price reacted at support which is also the source of previous down move and it was also completely ignored in the upmove as we can expect weekly and monthly moves just use to ignore lower time frames orders and trading higher time frames use to wipe those whispaws from your trading. Take a look at the chart.