Support And Resistance Or Supply and Demand

Hi, First of all I would like to remind about my last update, of Eur/usd where I mentioned that Euro is sitting on weekly demand and pair rallied to 1.1460 and that is why I always it is really worth to taking weekly and high time frames into consideration.

Now, the question arise here whether supply and demand are the same as term use for support and resistance. Answer is simple and straight "No", because support and resistance have no concern for smart players as they use them for take profits and when we see again that those areas hold it could just act at supply or demand and that is why price turned at high reversal points.

I am hereby putting everything together in one chart and with a live example of eur/jpy where you can see that why every support is not support all the time and why we find strong holders sitting at high or low with the break of those small support and resistance areas.

Supply and Demand Vs Support and Resistance

Its about decision points after we have seen some strong areas of demand and supply ignored and Reaction when price again approach those areas. In this case We have some history but that history won't be considered as valid untill we see another approach to test the borken areas. Price made a lower high after strong decision points marked as fresh demand with the blue box but price reacts well before it and compressed to ignored demand (second one). We saw a strong decision point through the ignored demand and price retest with new lower low was strong confirmation of pending sell orders and price reacts immediately and fall to test the demand formed and that is where I would looking to close.

Approach to support and resistance is difference between Pro and Novice traders and when you some history it has to be validated with context and when everything synchronize well with history then we get to conclusion that smart money is present in the market and playing the tricks and we just need to be conscious to get and entry stops and target.

Euro sitting at strong weekly Demand Time to buy Euro against Pound

Euro is sitting at strong weekly demand and Bull should attack this area and This could be the last chance for the bulls to move the price higher otherwise bear attack would be enormous.

The reason why I am so much concerned about this chart is that because bulls has already given 1.5332 area which was strong demand zone and it was tested earlier but bulls failed to rally the price above the previous supply Area.

Now We should start buying Euro against pound as I observe that both of the currencies will start moving in the opposite direction and Euro will outperform Sterling in such a Case. So I am not putting lot of pressure on anybody as I am not the one who decide but what I can see weekly Imbalances and Now It is the time for the strong reversal to take place in euro against the point.

How to Find High Frequency Reversal Points In Currency Trading.

Hi, I hope everything is going fine as I try to stay away from blogging and trading for a month and in the meanwhile I didn't had time to update the blog as well. But, As I stated earlier, in my post How scalping can be benefited if You want less riskier entry and make money while less taking much less risk an swing trader does.
A reversal is not created on a day or two. While many new traders will look at a chart and see it as ‘overbought’ or ‘oversold’ market conditions but these two terms are rather a part of Emotions being Involved rather than any other defining reasons that a trader can work on for better trading opportunities.
There is a lot that goes into a top or bottom forming that can generate worthy trading opportunities, But how a trader can benefited from them as they rarely occurs on higher time frames and most of the Corrections don't ever turn into big time reversals.

Short term reversals can be a part of too much expectations as they are never a part of weekly or monthly chart. A true reversal requires ally or Collective Institutions feel same for the change in environment. Complete Change in Sentiments requires everything to fall in place and it is quite rare.

First, the fundamental backdrop must change on multiple higher importance news events by way of a significant surprise to the upside or downside. In an uptrend,The key point to be made up front is that reversals are more rare than we give them credit for and the small corrections, less than a reversal where multi-week lows are made in an uptrend, often aren’t worth trading. Therefore, when we believe a correction is turning into a reversal, we need to be skeptic and prefer trend continuation.

Lets take a look at few of the ingredients that need to accomplished to call a reversal or continuation in trend .

Usd/Cad update Close trade For +150 Pips.
Strong Ride as Expected, Not expected such a quick run.

What is scalping or Intraday trading and How to scalp successfully

I would post an article (not a post), but a complete article itself in the coming days where I would try to let trader's know How to scalp currencies. Scalping or Swing Trading are nothing but only techniques that requires practice and experience and all those myths that traders have or wrong assumptions that come to mind would be cleared with article. I would post charts with example and If an entry could be taken or what are the facts that you need to point out when you consider taking scalping or swing trading opportunities.

Starting with Euro dollar which I think is a safest currency and enough to provide you opportunities and clear level for Intraday trading and has good range on a given day. Euro is best to scalp because it is great sign of global sentiment and moves randomly with the global improvements and setbacks and that is why I always prefer Euro and Pound for Intraday trading although I always believe that trading any currency require immense concentration and it keep testing your nerves when it moves volatile but still a chance arrives when it fullfill few assumptions which has to back up by your trading plan

to be continued..............

How to read a Currency Chart With Euro Dollar Base was eyed

Hi all,
Its been a busy week so far and I was looking for opportunity but None was provided but today ahead of FOMC I saw Euro and pound chart Which I post earlier, and Now again I come up again with something that is worth looking at.

Reading Price Action chart is not a science, but an art and an art to understand in advance when and why a particular area is going to behave and when You know in advance and price react the same way then entry become lot easier.

See here
FOMC Statement and Pound Updates

Supply and demand traders are somewhat stay ahead of what other thinks and Recent Euro dollar example tells you all the story. We saw a strong Euro breakout and also saw a strong demand level which I market in the chart. Demand and supply are more than you can think of but I always mark those which are really helpful. Now, the idea is demand and supply levels are there to be broken but we can really spot out those who are going to hold and chart below is a great example of that.

How demand level in Euro Holds out

Although I sight reversal in Euro When it was fail to break above the multi-week high again after long ranges, But still I need further clues to make a statement that Euro has continue its Bullish Momentum and further gains are possible, But I never make prediction till I got a strong evidence of what is about to happen in the coming days or weeks.

Euro is vastly trading currency globally because of 17 Nation currency has lot of trading partners globally and they need Euro to pay for Imports and that is why Euro's exchange rate is sometime so vital for other basket of currency and they will move randomly with Euro, But One should not bet on that and Should have well versed with knowledge and skills to trade Euro or Currency that are positively or negative correlated with the Euro.

Reading Currency Chart is the Important tool to have as Its not only about indicators lagging or advanced, it is about reading Institutions or strong holders movement because they are the one who will move the market up or down wherever they want and specially when you have such big risky event one must be completely sure of taking and entry prior to release because when you take entries with the market movement then most of the time you get trapped and price mostly reverse after strong one sided movement.

This is a special skill that one should have to survive and think of making Forex as full time employment or money making opportunity but reading charts is must to have in your belt to keep growing as a trader.

Stay Tuned For More.