Top down Analysis in Forex. Weekly to h4 . How to draw top magic levels from higher to lower time frames.

Hi, Readers ! Last time I updated my chart with two classic examples of Touch Trades . Now I'm hereby want to show you method that will completely change the way you trade. Exactly, I still wonder why stairing at charts for hours don't bring in the results.

Answer being the Approach. Approach to levels & emotions that you bring in with trading mechanical systems or Intraday Scalping. Somehow, they don't work. Not work for me, atleast !

Let's not waste more time & get back to the real motive of putting this blogpost. I am posting the Gbp/nzd chart below, which tell you the real story behind "Trading Levels". Levels that can be traded from higher to lower time frames. Price do tend to give us clues before approaching such levels and its our responsibility to check the weekly charts once after the close of Trading week.

Points you need to follow here are :-

Strong Weekly momentum Candle that goes through the previous Resistance with strong push.

Failed to carry the momentum & then after few weeks we saw a break below & then price try to get back above the low & rejected and collapse.

Price Return to that level but with the cautious approach.

Look down the DAily & H4 Chart to see the reason.

Price does compressed to the level

Take a look at the Daily & h4 Chart below. This charts give us clues why we are quite sure of the rejection from that level we market on weekly Chart.

Only thing you must keep in mind is to set your stops & see above if there is any area where you can put your stops & Set the targets to the low levels of rejection. It could be Rally base rally on h4 chart to take the profits.

I've marked those zones on the chart which can help you take decision to set your stops and profit targets

Support Resistance Flips are most common way to trap Retail Traders

We can clearly see the h4 chart in which I've market the support/resistance flip before approaching to that weekly zone. One more thing to notice is that prior to visit that flip there was strong sell-off which take carries price to recent lows & then price start with little compression to approach that Area. again

Price Visit the area after the flip but there was still room for rise & that is exactly what happened when price visit the area again. but that approach was unable to push the price through the resistance and price stalls near those levels and I took the entry just around that S/R flip & put the stops just above the h1 supply & still in the trade.

Price Does Everything here.

STrong Sell-off followed by S/R Flip.

visit the Area of importance & clear the demand again & then revisit the area and got rejected.

Update on 08 september 2019

I was just going through the charts for weekly setups and found out the recent Price Action in USD/chf Chart. Price is very hesitate to go pass 0.9900 and every time it goes pass the line, steep fall was seen & this time its no different but this time I expect price to be bit more aggressive to 0.9950 level.

Chart speak louder than words & this usd/chf Chart screaming for sell-off

Sorry for not using the regular MT4 platform as my platform is going through upgrade and don't have access to the platform.

I've market the zone below as demand which for me is still a fakeout of the demand and if this area is not tested again , then I would see only one area of concern, that is 0.9950.

I would like to make you feel comfortable in coming weeks and months by being more eleborative & explain things on charts that will help you trade naked charts & levels & I can promise you that you won't be using any indicators or any other mechanical systems in trading at all.

You must take not of few things :-

Every Price Action is reaction of previous price patterns.

Price don't randomly fake Demand & supply zones

If you see an area which is protected earlier with wicks & then engulfed with force, then You must look to see the areas where you can enter again. It could be level above the recent zone or small base followed by drop.

Price Usually compressed to those zones & pick every demand created there on & finally fall is very strong and you need to be proactive in setting targets and trailing entries.

PRice Action zones in usd/jpy sell stop ordesr around 106.45 l stops around 107.32

Take a brief look at the chart & set pending orders with stops around 106.82

Hi, Readers ! There is an update to the above Trade usd/jpy which I mentioned yesterday. Take your time in reading and understanding why I decide to give a bit more to my recent trade of Usd/jpy. Its totally advised that You extend your risk based on your account equity & be decisive and flexible to your approach in your trading, otherwise this market can react anytime without any due reason.

I would like to update you on my recent setups of usd/jpy which I update yesterday. I still think the trade is of high probability but as we see immense liquidity in Asian session really give bulls an upper hand but rejection near the area of 106.78 is still quite demanding. Are we still over reacting to the recent rise and falls in japanese pairs. e.g Cad/jpy .

Canadian banks does not change in overall benchmark interest rate of 1.75% which strongly push Canadian dollars to recent lows after we make bundle of pips in our usd/cad pair. Take a look at the Chart here. I am still quite reluctant to what I post but the difference in the approach and setup is quite different from yesterday chart. I'm still looking for complete long term position in usd/jpy.

I would enter one more lot around 106.80 area & then put the stops around 107.32 & look to close first lot around 105.70 & let the rest trail around 106.00 area, & see if price would breach the recent lows of 104.45 & then I would target 102.50 area to close my second position.

Decisive approach in trading is only thing we need to watch out for

You all know, I always try to trade with the edge. So, where do I look for price Action is the nearest support and resistance and the approach and reaction towards those areas. Price has already react a lot to the broken support which in this case must be breached but the last reaction and recent price action of h4 candle which has just closed looking quite reluctant even though push is quite strong from the yesterday's close. If that is the case, then why didn't price manage to breach those levels.

Reason NO. 1 > NFP week. We do see usd/jpy pair react quite volatile to the release of Non-Farm-payroll & tomorrow is the day of NFP & direct relation with usd bond yields usd/jpy reaction to nearest support resistance is quite understandable. But why these areas are so strong that price do scare to react. Reason being Retail traders.

Retail traders put stop orders near those areas and price needs to have enough liquidity to take those orders and react. But even last rejection and order accumulation was quite strong to test the previous swing low which is strong rally and series or rejections tell everyone that there are bundle of stop sell orders just above the recent high and after taking out those sell orders. Price will continue to fall & that is the reason I see those orders around 107.20 area.

Price Action do collect lot of sell-buy orders as marked with blue lines & that is the reason why I always think of the reason behind those moves. Not enough liquidity is the first reason that come to my mind or pending release is the another . Ever Price Action area is a reaction of previous action. IF there is no earlier or clues of reaction price won't move and will going in one side & that is the reason why Forex market is one of the best market based on what you can look to adapt and transform your trading skills and be a professional . This really does not happen in stock market at all. Reason being the closing and opening gaps, overreaction to news & unless you are big Tech giants like Apple or Google. You share price will have an edge as compare to other stocks.

Concept of Trend Trading In Forex

I've put my whole hearted effort in spotting opportunities and present it amongst all my readers. In the below Post I would like to explain you the concept of trend trading and how you can spot opportunities like these. These type of opportunities are very high probability ones and if the below demand buckets are filled these rejection goes right to the next demand or supply level vice-e-versa.

Chart of Aud/cad speaks all in itself. Price got rejected. Either it CP'ed (compressed) to the previous broken support or faking out the demand before hitting supply & then travel right way through that demand for new move.

There are few points I would like to point out here which are

1. Price must have some sort of history prior to testing the broken level

2. Price must have pick all the opposite orders or compressed into the zone.

3. One high probability one is that broken support must have become the base specially if it is a strong one like Drop base drop and no panic buying at support.

4. If all the conditions are met and one is missing then you should look for QM level on smaller time frames and those QM's must become probable FTR. I would explain how to spot these type of opportunities in detail in coming days and weeks.

Stay well, trade well . See you on the other side of NFP release and TRade outcome will be updated on Monday.

usd cad Price Action . Price is reacting to old supply and demand zones.

Usd/cad chart posted here. Price action is quite subdued by filling demand buckets and reacting to upper supply zones and then falling very seriously. Previously stated price is tend to resume or are we seeing a big rally to upwards.

My idea is that we should see the approach first to react to 1.3370-80 zone area & then I'll update the post for possible target zone if there is new zone created of demand when it breach the recent high. Then we will possibly see that short term rally is eyeing multi month top & we should only look to trade to long opportunities.

But As I said, Its totally on the approach, when price leave that zone and then reaction to reach to upper supply zone created and that fall is very strong and I would possibly recommend shorting around that zone and then target 1.3210 area with stops around 1.3410 area. Offering very good Risk to Reward opportunity in sight.

Usd/cad supply and demand zones clearly marked on the chart

Update on 03rd September 2019

Look at the Chart Above & below. Aren't they same. IS the price Action clues of rejection from true FTR of the Flag.

There is still room for more rejection & I would surely update the chart in real time, when that opportunity arrives. Stay Short Usd/cad

Is this market really fundamentally driven ?

I've seen market takes turn based on what big players are focusing. Federation and Trump & OPEC, people with big guns turns the market at will. How long is it going to stay or is it going to stay like it is ?

Can we see banks following the market & turning the table with strong rate cuts & Show off their economies the right way. Well ! New zealand bank did exactly the same way and that was the best volatility for New zealand pair and Crude oil inventories as that create panic amongst central banks of global slowdown.

Same can be expected from Bank of Canada.

Market is not expecting any rate cut at this time of the year but this market is full of surprises and this will be the another one and we could usd/cad take lead and rest follows as well. I'll surely keep an eye on that as this for me is the biggest event of the week after what KIwi banks did.

Brexit deal, sterling & trading levels

Brexit deal or NO-deal is currently on the cards sooner or later and that is the reason why sterling is so much range bound ahead of any news coming out of camp & also we see strong movement but in range and as everyone is expecting pound to recover, I don't agree with anyone specifically on the short term, as I see big orders around again at 1.2220 area & I would surely look to ride that area.

Usd Bears seems to be returning the market again this weekend l Eyening crucial test of 0.9810 of USD/Chf

Hi Readers,

I hope you guys have heard of stop hunting process and lack of momentum and fundamentals drive the price back to previous broken support resistance area and expect to hunt for stops both up and down. That is exactly the case for USD/chf as I've seen. I am looking to short usd/chf here with stops around 0.9830 to see if there are still some fuel left in the tank to push the price up in the range and take the momentum from there on.

This week is very quite as far as currencies is concerned except pound is getting a strong run in past three days . This could be a relief rally and one should again be ready to see if there are players around to push it again towards the multi-year support around 1.1950. That is way far from where the price is right now. But this is the moment if you want to bag big profits in currency trading. I'll keep you guys updated on gbp/usd next week.

Price in USD/chf is expecting a u turn again around the current levels

Chart explains it all. I often believe that if price is taking out previous strong bases with authority, then It is time to turn the paddles again when price return to the origin of previous. USD/chf is the doing exactly same. WE break below strong support and we clearly sees decision made to move lower but Now there is a need of liquidation of collection of earlier pending orders and we can see stops around 0.9830 and target 0.9710 area once again.