GOLDEN RULE
1.you must free your mind! You must approach every chart that the trend is the opposite of what’s apparent.
2. Then you build your case to prove That the opposite is the trend. Prove what’s in front of you is an illusion
3. Then wait for the illusion to disappears.
4. You have to understand price actions rules. True price action isn’t trend lines support and resistance alone and that these methods had been taught falsely. Price action is within the power behind the move and the reaction From that move.! See it this way every action leads to a reaction which poses more of a threat the action or the reaction.
5. You have to be a hunter and behave like what’s seen in nature. How do a cat hunts? It’s lurks and wait for the right timing otherwise it watches you must do the same
6. Understand that SUNDAY IS THE MOST IMPORTANT DAY IN FOREX. why? It’s the least liquid day right so what do this means exactly. This means that big money is required to move the market price with low liquidity thus when you make Sunday you day to watch the charts and not do “what we were taught to do and disregard Sunday” you’ll actually see the bb cards clearly
Now looking at audusd As it suppose to be view.
1. What is the image being painting.? Sale or buy? A sale? Hold; stop, breathe. 9/10 then it’s a buy!
2. Prove why it a buy and not a sale
3.pay attention to w/m some are continuous and some are reversal not all are REVERSAL. I’ll shall explain this briefly and more..
The most important analysis is understanding POWER and that these ppl are very meticulous everything is Measured aka MEASURED MOVES damn Near net equal time and distance
Price action, wave analysis, pattern analysis, Tech analysis, supply and demand, and a clear mind points to a buy not a sale!
1. Audusd been on an uptrend for weeks breaking resistant even post covd19. To just suddenly go short ?🤔 what’s the logic in that? Remember this market is manipulated it isn’t a real market. These people are chiefs deceivers. The real move happens fast after the illusion is completed in which the illusion phase last forever! Ex it’ll take 4 days to drop A price below support but than 16 hrs to retrace back up and make a new high. Pay attention to the POWER behind each move
2. How do we know when a reversal is the move.
1. We look at the the first pullback before the retracement. Did this pullback go deep into the range...? If so once price leave the net range as audusd is currently we can look for a reversal. This pullback is highlighted blue.. but not Here aud showed its POWER. So what is the pair doing now..? It’s resting painting the sale picture before it goes up and knock out H1.
2. We are in a range there is no cont or change in trend without a range. Rule of thumbs consolations at resistance means price generally will break resistance and continue to go uphill usually a short distance before the reversal and verse for consolations at support.
3.Always mark the highs and lows Look at the POWER of the high ( the action) to the POWER OF the retracement ( the reaction). Now h1 means high1 l1 means low1. We have a h1 and l1. We have a m formation at line b or double top but the slope are the same thus we can call any point on that horizontal line a high no matter how far left or right the point is from h1 thus I’ll put the point in between both points indication them as one point. Thus we have no higher high or lower High we have a No lower low also. This is very important now if we retrace h1 from l1 to either of the furthest “m” high well get a .61 retracement. This signals a Continuation not reversal.
4. Now let’s look again at the most importation analysis - POWER. H1 is formed with an instance bearish response without a deep penetration into the bull trading range. Look at the battle the measured moves of the bull and bears. Ex the center double top measured moves and it’s retracement. Which side pulled the strongest and longest with the least amount of choppiness between adjacent candles. The bull did! Thus the power hadn’t shifts to the bears yet. The rapid response Of the bears is a stop hunt Tactic to induct a sale but the strength is bullish
4. We have an h1 and l1 and two equal sloped h2 this is also a trick. The chart shows a lower high and indicators show a higher high leading the falsehood of a divergent. we must remember those two equal slope points are not a high or lower high so u cannot use them thus there isn’t a divergence present indicators won’t point this out this is why we have a triangle forming. Trading chart patterns shouldn’t be done without understand the meaning behind them And most of the time it a sign or reversal meaning price will breakout go those taught to pips and then drop fast fir the real moves yes you can trade it but how as Bulkowski said, take half the length as tp. Why half he didn’t say but why is cause the pattern really means a near reversal so take half n get out of dodger lose all and some . 😂😂. People won’t tell you the truth even bout Forex it’s very sinister but I’ll leave this out
5. Supply and demand
Price has to sale off cus there no buyers if there’s no sellers. Again look at the POWER the bulls pull back with force yes and just cuz it didn’t breach the highest high do not I REPEAT DO NOT mean it’s a reversal.
6. Let’s look at price action again
We have this rule I call 1,2 pull failure and a nested failure. And the trap of each. Simplicity is key here. Again look at the POWER. Aud been on an strong up push can we really think it will sell off after one failure.. ? Think on it your a bb you got millions in a long position would you back off your buy and retreat after one fail attempt after you just broken through crazy resistances..? No. You wouldn’t ! I wouldn’t ! NO ONE WOULD,!,,!,,,,,,,!,!!! So how can we even think this pair is a sale🤔. Look at the middle M legs I have them colored look at the power of the bulls vs the bears when the bulls went up there wasn’t much resistance yet when the bears pull down there was bulls resistance and price was choppy!! Price action is king!
Now we can expect a retest of A major resistance at least twice! Micro and Marco this concept is seen on all time frames yet here cus we are so easily manipulated we forget that hey price didn’t retest this resistant. And we Believe what they want us to believe that since price failed to break a lower resistant High that the pair is a sale 🤦🏾♂️ If you thought this you’d been trapped!!. The nested rule. If there is a strong buying (as we have here) or selling force we should expect at least 3 attempt for price to break resistant before we say it’s a sale and we don’t even have one attempt here 😂😂.
6. Wave analysis. We know modernity we have 3 pulse wave historical 5 wave well here the bull force been strong we have 5 wave and what do Elliot say about the 4th wave ? This is the wave we’ll see triangles form. Before the 5 wave leading to the market corrections or Reversal and what do we have forming a triangle 😂😂 meaning this isn’t the last wave people.
5. Now let’s look at the most critical part the low. You must pay close attention. We have a low l1 l2 hadn’t formed yet. The measured move for the l2 isn’t complete It will be completed when ..? On Sunday,! Now we can price the legs and concluded that equal price will be on each side. Measured moves are under valued by retail. So we have no lower low or higher high how can this be a sale? Just cause we have a downward sloping trendline? This is what they want you to think. Most traders trade trendline wrong and they know this. So what will happen either we get a higher low , lower high on Sunday. If we get a higher lower we can expect a nested failure attempt meaning 3 tries at resistant but we won’t get that this is what we’ll get
We will get a LOWER LOW. L2 will be lower than l1 (The trap) Price will reversal up making a higher h2 this is a classic cont pattern and a maker move
L2 will drop below the left legs of the first w the l1 it will attract more sellers adding to those who already have sale orders it will stand out cuz price hadn’t been below l1 during this whole range and it will have a big sale logo on it. And everyone And their momma will short it and guess where their stop loss will be and where my entry will be.😎 Right where there is liquidity at. And where is this? Right at the m on line b where there is no higher high just two point with equal slopes. See they intentionally made that zone for stop loss. Ppl will say price been rejected there I’ll put my sl right about structure 🤦🏾♂️Price will jet through there so fast triggering all those stop losses and triggering the orders of the wise and I I can just taste it and it makes me hungry for my steak,!,! 🙆🏾♂️
Finally you have to understand the game it cruel but ur free to play and they are free to take 🤷🏾♂️. We all were a guppy now it’s time to become a shark