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.

Forex Price Action l Value migration supply and demand

Gbp/jpy Rise to Multi-year high after Minor correction

Gbp/jpy Value Migration

As I always mentioned in my blog, Our primary focus should be on strong trends and we should always look for value Migration and Today we have seen such behavior and I would expect price to make a new Multi-year high in the pair Gbp/jpy

When we see strong trend followed by correction then We should always look for pullback only when price has not managed to liquidate too much and when we see spikes in such behavior and pause in trend, then we should always look for Value to migrate higher soon.

Value Migration should be a quick spike and there should not any hesitation in the market and value should keep rising with price.
Idea should always be to remain conscious and wait for such opportunities and keep buying on the day on any pullback as "Strong Money" Will keep buying and keep moving the price higher because it is natural in such strong trends and I have seen strong movement after "Value Migrates" followed by strong demand in Currency Pair.