Consciousness need at every level which helps understanding the context and logic behind moves.

I would like to excel on patterns and elongated candle to tell you what background is telling you. Imbalance is what creates "trends", which means when you saw breakout with large candles which is also know as "Initiative Break", can work in favor for you to Identify setups like this.

Have a look at the Chart below !

We saw large candle and price hold on the top and then we saw consolidation in a "rotation center". Point I am trying to clear is who is in command, And the answer is "Weak Sellers". Reason is because, breakout was very strong and Inner space of the bar work as rotation center and we saw a strong spike out of that rotation center and then you see that area was "retested" and price was set to rise again and that can be referred as liquidation break.

That happens only when strong buyers want to trap the sellers and push the price way beyond to create a panic for sellers to Immediate Cover the Position.

Intrady another Reversal in usdchf could be there. Try and understand Context !!

Is it really a Mature Trend ??
I give it one go for a retest but if you see it closely, it make higher highs and hold on to those highs in first chart , Price the show bit of liquidation and makes a new high with elongated Candlestick and today selling could be part of testing the supply of that bar.

But price did not reverse immediately after that range breakout with bullish bar to start of the day and price keep falling and no urgency was shown and I would consider it more downtrend to follow. So, watch out any failure after retest or at new higher low now

We should be able to learn the context of Price Action

In this study of price we will consider few steps that let us understand the activity behind the candlesticks and what they tell you combined with price action.

Trading is difficult because we tend to analyse objective outcomes (that have already happened), but when we analyse something that has already happened, we tend to look at the past. When we analyse market conditions, we look to the future. To be successful in trading, we have to be ahead of the crowd and we definitely need to look at the future than to the past.

Every pattern on the market is context dependent - sometimes it will work, sometimes it will work with the opposite result, sometimes it will have no impact on further price action.

Let's look at the popular "engulfing pattern". In classic literature dedicated to candlestick analysis, it is considered as pattern showing strong buyer (seller - for the opposite setup) stepping in the market.

This chart tells you all the history the reason behind most of the "candlestick Pattern" does not comply with Overall price action as knowledge of context is very Important and that is where we need to be one step ahead of market to make consistent money and that is what trading is all about

In next Article, We will cover how market react to strong trends to resume and how to react to different context occuring with correlated pairs as the same time.

What is Price and What are the use of Term Value in Forex Trading

As you might notice, I'm not suggesting to simply FOLLOW PRICE, but I suggest you to rely on MARKET LOGICS. Market logics stands for those circumstance when price is derived by true Market Participants, and they are the strong holders who have start buying with some Force.

Why not to simply follow price action?
Price is simply the advertising mechanism and in most cases it can be misleading.

"Should you accept this breakout", "should you fade this market" and so on and so forth. Price itself will not give you clues for that. You have to analyse fragile equilibrium(when supply and demand are equal Price has to advertise higher) between price and value to get answers on these questions.

What is Value?

It can be called area of aсceptance - area that market will more likely revisit or stay near that area for some time. Just Like we have accumulation phase for few days and then strong range breakouts or It could be a bracket and Price react from Hotspot (will cover in next section)and then hold on to higher prices. Trading markets, you should rely on fundamental market principles.

And One Of them claims: "The goal of the marketplace is to facilitate trading" If you think about this principle, you will understand that market needs liquidity to facilitate trading. By "liquidity" I don't mean single buyer that steps in and kicks the price. By liquidity I mean plenty of players with different perspectives, participating near given price level. If you have that pluralism in opinions, you have value area. If liquidity is not enough, market auctions higher or lower to find it, means if we have strong rapid breakout followed by rapid move and then certain sell down could be a case market look for liquidity and then in desperation neglect off that area and look for new highs to find that liquidity again. Guess, how it attracts liquidity? Of course, it offers higher or lower price - nothing is new. That's how market auction works.

There are 2 basic types of price action if we look at it from "price-value" perspective. I will use the simpliest way to vizualize value on market - moving average. Of course, it's not that simple in reality, but it would be enough to show you how it works.

Value leads, price follows :-

For example, it occurs when value is lower. Market accepts lower prices and rejects higher prices, yet it has scanned higher prices for liquidity Which often happens before rapid moves to make a new high and also know as a part of profit taking. You might notice that value is going sideways. In this case market has no reasons to immediately leave this value area. You may expect some rotation before something happens.

Price is leading, value is following:- In this case you may notice, that price runs away from value, there's often a gap between price and value, and this is an indication of strong imbalance - sellers are in control and it's better to trade in sync with them.

Intraday update of techncial analysis of the chart posted Yesterday

Brief update of the chart Gbp/jpy. I watched the chart carefully and reaction as well, I am bit busy today so did not update the Live chart. But the idea has been posted with a view what was expected. We saw imbalance disappearing from the chart and effort was made to rise and it could be a liquidation break but if you watch the chart properly.

It already had disappeared yesterday and confirmation was made with the test of supply area I mentioned in the box and rejection from there was first confirmation and If you are good enough of managing your trade, then this was a good Intraday reversal Chart. Just an routine update is being posted. Any Comments will be answered or drop an email for further explanation.

For Update Check my earlier post here---

Update of the chart posted last night triggered short and chart did the same thing as mentioned.

Update of the chart !! As said in my previous chart and mentioned in the explanation that I was looking for Imbalance to disappear and when that happened we see strong selling after the upside break and then test of supply area with strong momentum and then entry triggered here as well. SO, everything to learn and I will update the education portion of the chart, in my weekend update. Entry has been triggered and if it went again then I would look to cover quickly but it is a late entry and weekend so that is why covering should be done quickly but that is how I approach my trading .

So Stay tuned how price reacted when we have show rapid moves and breakouts faded out.

Update On Gbp/jpy Chart For Intraday Technical Purpose

Update of Gbp/jpy, Specially when we look for few charts at the end of the and everything has went according to plan then it is really worth to think of that opportunity next day and It is really worth watching that chart
If you see closely there was a Momentum Break after the breakout and when we saw higher prices accepted then second think we look at neutral day with minor area of protection or development area and that what it did exactly and then we look for demand to pick up after liqidation break happens and then Rapid Move and that does absolutely same things . But today fall could be a liqudation break or Imbalance disappers but still there is no momentum just a small momentum candle which does not have any follow through and supply area is marked and if we find any rejection with momentum that It's worth going short with small stops or cover you position early if that selling reverse and best way to approach the trading