Is Australian dollar giving us clues of Creating Overbought Conditions

I will try to keep you updated ahead of ECB and BOE Policy decisions, But I am not looking for Euro or Sterling, But I would try to opt to trade what I see and What others are doing as well, As If there is any Risk created by any unexpected events take place then we will see riskier assets like Australian dollar and gold sell-off.

It is not necessary that it will react as expected but violation and the first strong attempt will clear the way for me to enter, But this time we need to take excess risk but that is part and parcel of trading.

Keep an eye of Australian Dollar

This could be another situation of Supply overcomes demand and Every attempt has succeeded and liquidation follows but we need to keep and eye on the pair at this particular time Because of risk could totally reverse the pair and fade the recent momentum breakout.

We need to prepare ourselves and If you really believe in fading extremes or fading the particular price action attempt then you can fade out the candlesticks attempt and look out for much more deeper in-depth analysis (rather only candles),as it will really help you built a successful trading career.

When your thinking is unique and gives you edge, then Price action is in itself would seem not as complicated, but we make it simpler by our attempts and control of risk like such activities where you risk is very little and reward is totally 4-5 times of the risk and possibly a complete reversal.

Update of the post cad/jpy How to use Trailing stops

First I would like to mention to my followers about the chart I posted Few days ago, Where I mention How to Use trail stops. Take a look at the chart here

Hi traders! IF you watch my blog regularly then You might have notice that I am consitently looking for something that has logic and I have clear all the doubts in almost every post. This is an updated post of the chart I posted on Wednesday last week, where I cover technique of "How to use Trail Stops" in trading and Today ahead of BOJ rate statement and Big impact day tomorrow, I am looking to wind up all the positions, and will look to enter again If an entry will be offered, and High volatility is expected in next two days, as traders are expecting too much from Banks but getting almost nothing.

Updated chart of Cad/jpy

Pair is still in strong demand and background has not seen any strong sell-off and whatever selling we have seen was against the "strong Holders" and immediate buying is strong sign of demand coming up again on daily lows, and one strong sign is when ever pair face sell-off it went to make a new high and it happen almost on every sell-off.

When you see such behavior you should be looking to remain in the trade for long time than expected but big news can create risk in the market and We should respect this situations and sit aside and see what happens and then we should trade our levels and ignore everything else

Breakout Trading succes : How to trade breakouts with supply and demand ...

Price Action basics Primary braekout and price behavior

First I would like to mention to my followers about the chart I posted two days ago i.e Aud/cad. Take a look at the chart here

I post this update ahead of BOC rate statement But what background is telling should be the primary need of a trader, to see whether the "Imbalance" is still presence in the market and when we see Primary breakouts out of ranges and look to spot "Reversals", the we need to spot that Imbalance first which shows that strong holders are still present in the market and They will buy if there is strong sellers going against them, and then we see spikes and that is what is necessary for a trader to enter with Low risk and usually cover position if that fades out quickly

Updated chart of Aud/cad

If we see another attempt to buy and see possible accumulation, after that activity and market end the day on lows which shows that Market might have again gone against the strong holders and With Background earlier shows a sign of strong seller, Then need to spot out logic and aggressive trading is name of such activities and We just need to spot out momentum , If it offered after breakout and market usually don't hold for too long that area and rally strongly afterwards in panic and Strong holders will buy with even much force