Elongated Candles Rotations center

I have discussed a lot about "elongated candles" which forms a "rotation center" as and protect any rally against these candles and forms a rotation area, Price squeeze to test the high or low again and sometime go beyond the extremes. I would put more light to that topic soon and cover some trades as there is lot of strong trend which has been pause for quite a while and market preparing for next moves possibly reversals. But it is quite optimistic to predict it too early but recent candles in Pound chart, hinting it could test the strong support.

Will post a chart soon If I found something lethal in the days to come and cover this topic with strong examples.

As Promised, here is gold chart updated with possible outcomes

This chart is a prime example of "Elongated candles often works as vaccum in the market, and As we have seen some good strong bullish candles at support which 61.8% of Fibonacci ratio, which wave traders used for wave ii or wave iv correction, was a clear trap and price fall rapidly.

But in such case when price end the month on lows and after such behavior If you see any consolidation (As in case of Euro Recently) you should wait for price to rise to sell rallies rather than just selling with the breakouts as such breakouts often offers good low price buying and test of high of consolidation area or high of the swing, so we would wait for any confirmation in such case to sell the rally specially when we see patterns that don't followed by follow throughs to sell the rallies, Will update the blog if found some substantial.

Australian dollar updates Rally Across the Board

For those , who did not check my earlier chart, Check my previous post here !

As I mentioned in the previous posts, rally of Australian dollar across the board is most expected, and little correction and another shift in momentum is seen, And this time it is with even more force.

If you see the current rally from the lows, then it has bounced from 0.9320 areas which was mentioned as extreme support and now again after ending the week on lows, price accumulates enough, and today there is rotation center violation which is good enough for us to reenter

After price open up with the gap to the downside and then a little upside rally after opening, which was not very strong but you can see "Shift in value" on hourly chart and then spike after the release of Chinese manufacturing PMI which tells us that there was a strong improvement as PMI has crossed the level of 50.0 and above 50 there is strong improvement after months below the 50.0 Mark.

So, there is always a mixture of fundamentals and technicals, which make us flexible trader, because alone technicals are not helpful fundamentals has to be supportive in every course, to support the rallies, and Price if breaks the highs with force, then there is strong test of 0.9510 area could be seen, and after that 0.9570 and 0.9630 aera.

I would always support risky asset class as Crisis situations as war in Iraq is picking up and this force Institutions to buy Gold and Riskier asset class like austrlaian, canadian and newzealand dollar, which always works as safe heaven in risky events

As we have earlier seen, buying of canadian dollar last Friday, So, it could be turn of Austrlaian dollar as well.

Upate on Australian Dollar as Rise was on the cards

Those who did not check my earlier post check it here

Price did exactly what I had earlier anticipated, and I have covered my position due to close of trading session and daily activity and I would like to see a retest of the zone of entry as I have mentioned on the chart.

We do need strong rallies after test in the pair to reenter. So, Nice daily profits as It was targeted earlier with "reference points" did hint us.

Australian dollar Intrady technical levels

In my earlier posts, I always mentioned that we should look to find "Imbalance" to spot the "Institutional activity" in strong trends and shift in value can provide you with another attempts to test the high, specially when trend is strong enough to keep moving back and forth.

As I have mentioned in my previous post that "Australian dollar" is about to break the barrier and it did hold on once again and I was stopped out, and once I was +50(greed to earn more) and I had to cover and stopped out at breakeven and Price has rallied from that area and looking to test the previous zone which could be protected by "Strong holders" which is 0.9210 area.

If it holds and price try to accumulate then there is strong chance of momentum carries the price to test the highs, and In strong trends it is strong possibility that price "Gravitates" towards the previous "reference points".

Price action building strong trade location here

There is a strong chance that price will go through the support zone, but we should look out for with the trend possibility and when you are trading with convictions you should look to back your strengths, and My strength is I never look for reversal too early until there is strong liquidation and couple of attempts have failed.

I also look for candlesticks congestion areas or bullish liquidation traps as there was one yesterday, and price reversal today offered an opportunity but I am not too quick to launch on such scenarios.

Intraday trades UPdates

Posting a little update on the usd/chf chart possible congestion candle the last bullish candle and the trade was triggered at 0.8980 and I had to covered the trade around 0.9000 because of slow tempo.

Still there is lot of room but I would like to remain on sidelines ahead of FMOC statement tomorrow and anything can happen but if Fed tap more then we should see rally in usd bulls.

The idea was right look for momentum to carry forward the last day momentum to atleast test the highs and I expected that but due to lack of volitality, the pair seems to pause at the resistance 0.9010

Take a look at the Updated usd/chf chart

I would like to re-enter again if I am given the opportunity to buy low again, but that could seems unlikely because if an area is built then there is unlikely that price visit the previous area.

But to facilitate or through liquidation break it can happen but chances are very rare. Uncertainty drives the market and if price breaks the recent barrier and take out the highs with momentum, then there is strong chance that the trend resume and test multi month high at 0.9110 area and break of 0.9030 will offer good risk to reward.