I have again turned up with some good learning of Currency trading process. This time I would not only talk about how important it is to understand the price action but also on relative Importance of Particular Candlesticks Patterns.
Price Action techniques have changed and will keep improving with time. But "context" will remain the same and with context I mean the way "Institutions" enter the market and sell and buy with predetermined approach.
So Candlesticks price action usually works the other way because last session close on break of high could possibly lead to strong selling in next session .
But this is not importance because ranges are often followed by trend specially If background is pretty clear and By background I means strong money dominating before could be sign of exhaustion of trend when any Pullback entry is offered.
It entirely depends on the consciousness and approach and when we have such approach that we can identify where strong money is trying to push the price, the become lot easier but it does not mean that we should not give respect to market if it turns and always look to get out early if things went wrong immediately.
Lets taken an example of Possible Correctional bottom
Traders have setup their mind after strong trends possibly one like that an pullback entry is waiting after small ranges but when these ranges breakouts faded out with strong candle above the range then we should look for New lows and effort after new lows.
There are no Sticky rules for selling and buying and that is what happened in this chart.
We have seen Price always jumped of from New highs and new lows and that can happened to this chart as well as prior trend is quite strong.
But when enter with logic then there are better chances that we succeed rather than blindly enter on breakout in strong trends which does not make logic.
Looking forward for some more examples
