Forex Price Action Shift in Value

HI Traders !

Its been quite a while since I have updated the Education Section of Trading But then I did find any setup even though there was strong movement in Currency Market. As you know, I never rush in to my trade seeing strong up-down movements, As I always back up my strengths and fade-off any quick breakouts when odds don't favor.

Traders usually use Candlesticks to Improve their trading skills, But for me Its not candles, But it is Consciousness and timing that always keep you ahead of Market. As a trader, we need to develop such techniques that always keep you ahead and No Indicator or Oscillator help you in this process, Even though they are helpful when other factors do hint or clue of change in momentum or even when reversal is happening.

Traders should know where Value Shifts Immediately

Most of traders, who watch my blog in Routine, then they are aware of how I use value to see what is happening when market maintain a level and traders went against the strong money. In above mentioned chart Value shifts so many times during the past few days but better is to wait and watch as value breaks out from here again to the upside and trend resume and We can easily get a pullback entry

Euro reversal Was On the cards

When small traders are very optimistic about possible growth, they bring a lot of fragile positions to the marketplace. Not surprisingly, market can liquidate (go down) very quickly if something happens. And market has liquidated after news release on Eur/cad – rapid movement to the downside was result of massive liquidation.

Forex Trading is "speculative business" And those who know that try to accept every little opportunity that comes their way, No matter whether it is short term or long term. But those who totally speculate on the basis of "Big release", that really has long term impact on the price of a particular pair, them one might called it gambling.

I have different point of view of accessing chart, One is Overall trend, release and logic behind the movement, And I always back up my decisions and never try to rush before the release because Its not us who drives the price, Its strong money who have huge lots which come and hit the market one after one and final decision is always reserve by those movers.

We did saw large movement in the price of Euro crosses and the one that I picked up today is eur/cad, And market set the tone for that reversal as you have seen in the above mentioned chart that market creates a scenario that "Liquidation", was about to arrive at any time after strong reversal and bullish momentum was not gathering any force and finally after we see final pattern breakout, Market was ready to go berserk.

Supply and demand Intraday updates Candlesticks

Habits that traders need to prevent

Hi traders! Successful trading is often not about unique trading system, it’s about doing certain things over and over again, or I would rather say – not doing them. Many beginner traders often do the same mistakes over and over again and if you would simply avoid what they do (or even do the opposite), you would get an edge on the market, Because this market is not about buying and selling in hurries or react according to market volatility.

I created my own TOP-3 list, you can add some more in commentaries to this post. I haven't uncluded money managent here, just chart patterns (market behavior) that traders fail to read properly (Because pattern do tend to trade with Historical Charts)

Selling «expensive» and buying «cheap»

Most popular terms used in the "trading" is «buying bottoms» and «selling tops». When price suddenly breaks out from some range (say, to the upside) and starts to move rapidly, most traders will sell against this rally. That’s an instinct as Indicators told you (As Most of them react after trend is matured or trend is strong). If we’ve seen before Low volatility and absence of significant price Behavior to whatever side, we tend to deny breakout, we treat to new prices as «unfair» and rush to open a trade. Why in this case most traders are in hurry? They thing that current price action won’t long last and price will quickly drop back to the previous trading range.

Let's take a look at Example

It has rallied heavily, and believe me – there were many traders caught in short positions. Price has finally moved back to day opening, but I’m not sure that any short-sellers could benefit from that movement. You can’t enter short position (or long position, any position) if you don’t know your risk, if you are unable to calculate or estimate it. You can, of course, but it won’t be low risk trade, your risk will not be defined (don’t tell me that you know your risk because you have your stop-loss)

So, in most cases shorting against such rally can be only reasonable when market is overbought and ready to liquidate to the downside. Such situations are pretty rare and this topic goes beyond our post.

To avoid catching tops and bottoms, I recommend to switch between timeframes from time to time. What is cheap for one timeframe trader, may be expensive for other timeframe trader.

Updates on the trades during the week

I want to remind that I have posted two updates in the week and both went exactly what I thought and eur/jpy went from 136.20 to 140.70 (at the time of update, And usd/chf recent trade from 0.9460 is still going strong and I expect after minor correction price will clear the new yearly high which is the only obstacle in its way and I have moved my stops from 0.9500 to 0.9575.

Idea was to go long at the breakout and Intermediate false breakout while prior trend was still strongly bullish(see chart above for better understanding i.e Usd/chf), And momentum was strong and the only resistance price was facing the yearly high and It has once again hold for minor correction and As of Month end, we can expect that the momentum to loose some space and Once things settle and big week ahead in which the focus turn once again on ECB meeting, NFP Payrolls and few other high Impact release, So expect big swing to carry on the momentum through.

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