Week Ahead Update and Substantial Crude Rally

Hi traders,

Its quite a while since I last update my Blog, but there has no price action to follow except recent Crude and Riskier Assets rally and there could be medium or long term bottom be placed, and the biggest clue is recent rise in rally of Crude is the biggest weekly gain since the late 2009 in November.

Big Clue was the recent Canadian Dollar strength across the board and that has to happen when crude and Canadian dollar are strongly negative correlated Currencies and Riskier Assets Like Aussie Dollar and Its counterpart Cousin Kiwi dollar recent rally is quite a big clue as We have not witness such rally in the past six months or so.

Let's begin with Crude Daily Chart, as they said there is clearly strong double bottom that failed and then with a break below that bottom we witness strong rally and that is bigger clue that stop hunting below the low was the reason of the last decline.

WTI Crude Hourly Chart Update

Basic Idea of presenting or posting charts like this is to let trader's know that what is true price action which demand or expect reaction. Reaction only come If price structure is designed to let everybody aware of the fact what charts are telling us. Now, simple scenario will be the Price test the New Demand zone and get rejected with strong volumes which will surely mean that there are new cash inflow and they think that crude is very cheap and should be good price to buy as it got rejected from previous levels.

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Watch How I Trade Euro With Supply and Demand Rule

Significance of Consumed Demand And Supply Zones in Currency Trading

_______________________________________________________________________________________ Category : Supply and Demand Zones and How to use them

Tags : Supply and Demand Zones, Supply and Demand In Forex Trading, S/R flip zones, Decision Making on Demand Zones, How to trade Ignored Demand Zones.

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As it clear stated in the Article heading that What are real supply and Demand Zones and How to trade those areas which are either consumed or retest.

But Most of them are interlinked with each whether they are New Demand or supply areas, or whether they are already consumed zones.

Real time Example of Consumed and Ignored Zones in Eur/jpy

I will clear these ideas in the weekend with more articles and with clear and neat examples with explanation and help you in identifying those zones to trade them successfully to know how strong money take valid decisions based on Consumed and Ignored supply and Demand Zones.

Price action from Higer Time to lower Time and Eur/jpy Shorts

Reading price is not a science, But still we have to bring in techniques which is indeed needed to read price action. Price is fractal and there is no fact that is moving sharply down on one time frame and rising on other, It will keep moving in the direction with orders coming in If there is an Institutional Orders are still need to be triggered . But as activity can be spotted on lower time frames, higher time frames should always be supportive otherwise big players can really drive the price to next decision point.

Recent Price action spotted in Eur/jpy on Friday was the real game changer because as I spotted there was some strong synchronization from daily to h1 time frame and price was looking for a trigger to fall which happens just before the market was about to close prior to weekend. That sell-off continue when market open on Monday, and I have try to cover cover all the activity in the chart below as I have emphasis lot on decision making rather than look for trading opportunities in every strong movement.

Decision making has to be there From higher to lower time frame but If it spotted in lower time frame and we saw some strong selling or buying on higher then we just only need a trigger with small risk to spot an opportunity and trade the trending market or even caught reversals at right time. Approach should be there and consciousness is the only difference between making money or remain on sidelines when you should be trading.
Lets look at few examples of the shorts I took On Eur/jpy

We have some strong decision making process in h4 charts, the area I marked with grey box is the decision making process but how market approach it was crucial . At first attempt it already fakeout the first decision point and then test it low approach or can say compression and finally made a new Lower Low. The area of concern is the upside rally has two decision points in which One is consider to be a pause after first rally which was tested already and second was that next demand of that DP was ignored on its way down.

Now For me I would surely be watching the price for next couple of days, how price approach that ignored area of if price found something substantial at the lows and If it did then I would surely look at the pressure on buyers when they buy it low, because remember there is always buyers at lows, but we have to see the pressure how they buy or take the price to next decision point to sell it at the higher price which for me is the way institutional orders hit the market.

Tags:Price is Fractal, Price Action Techniques, Eur/jpy Updates, How to read price charts, Intraday trading techniques, Forex Intraday trading, Live Currency trading

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.