Saturday, March 29, 2014


Real Time Update Time to take profits on newzealand dollar trade We might get another opportunity but supply has hit the market and we need better picture of range or momentum to go long again Check The chart.

Canadian Dollar Update


Example of how to trade violation in strong market With support fundamental Activity *Usd/cad Classic Momentum Example after strong Initiative break and then liquidation was very slow and Market react very slow near price extremes and After final breakout of range price start rising immediately and then test that development area and then sudden spike that was second opportunity to go long and with low risk high probability trade and that is the sort of market we should trade and that was classic example of imbalance as there was neutral activity followed by test and spikes.


Good Learning Process From these charts examples


1. Imbalance creates trends, balance creates trading ranges
Yes, exactly this sequence. Not "trend is your friend", but imbalance is your friend, because trend is an outcome, imbalance is a market condition that creates this outcome.
"Trend-oriented" mindset often pushes traders seek for bad trade locations, when opportunity no longer exists. Imbalance is what you really need.
Though trading is not a science, it has some unwritten laws beyond price action:
First - big market participants create trends and rely on fundamental analysis. Biggest players don't rely on charts in decision making process.
They have charts for just one thing - to know how crowd thinks and where majority will step in the markets. Big players need "hot spots" on the market (when many traders are in) to have liquidity. Their positions require liquidity and without liquidity they will be unable to accumulate enough volume for their positions.

Imagine player with pip size equal to 100.000 USD or higher. Of course, he will need liquidity and will build his position long enough.
That's why they monitor charts to know when traders will step in. But the reason they need to build a position is not techical analysis. Reason is fundamental analysis and analysis of real supply and demand.
It's hard to spot "big player" but one thing will help you. Address yourself a question - who loses on the market? Who is caught in short or long positions? If you understand that long players are losing, you automatically know that bigger timeframe short player opposes them.
Smart money players create imbalance and absorb volumes. Who provides liquidity, who consumes it? Like Warren Buffet said - if you find yourself near the poker table and don't know who loses money - it's you who loses it.
2. Keep an eye on hot spots in the market
What is a hot spot? They are: important extremums, round numbers, option barriers, in a nutshell - spots that traders are watching. If you know that volumes are there, big guys are also there.
Every trend can be divided into several parts - young trend, mature trend and culmination.
Young trend and culminational phase represent great imbalance but with one nuance - big players are building positions in young trend, and covering their positions during culmination.
If you see "obvious" trend and see very hot market, be aware - avoid being a laggard.
Take a Look at this chart
USD/JPY




Friday, March 28, 2014

Usd/chf buying at every LOW


Usd/chf one hour chart tells you the strongest demand after strong breakout and offers a pullback entry after neutral activity and liquidation at small development area and finally there was no selling and price advertising higher. USD/JPY I will update the text later.

Imbalance after strong spike at every Low


Eur/jpy chart tells us that we have strong demand in the place specially when price breaking out and spend few neutral days after breakout and In the rotation centre and try to violate it few times and you are end with breakeven or start covering your position and finally after liquidation breakout to the other side they start buy heavily at new lows and now I think it will test the upper boundary of resistance marked.

Prior development area boundaries can act as temporary demand

Euro Update

Price has touched the upper boundary of the development area
Quite Neutral Price action Still

New Update

Thursday, March 27, 2014

Test and Spike need more momentum to go through supply areas

. euro has shown no direction at the moment but a test of 1.3699 is on the cards.
.Take a Look at the chart price should trade below 1.3799 to break below 1.3699
.Momentum Neutral to Bearish.
.Break above 1.3825 will clear the bullish momentum
.I would remain bearish below and watch out for momentum candle to break below 1.3699.

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