LET ME EXPLAIN WHY THIS PATTERN IS STRONG. USUALLY WHEN THERE IS A ON THE D1 W1. TRADERS WOULD TRADE THE BREAK OF THE OR THE MOTHER BAR (CONSERVATIVE).
LAST WEEK THE PRICE WENT BELOW THE , CAUSING SELL TRADES TO TRIGGER, FOLLOWED BY CLOSING ABOVE THE .
THESE BEARS THAT WERE TRAPPED WILL WANT TO MINIMISE THEIR LOSS AND CLOSE SOMEWHERE NEAR 0.7700 (OR UNTIL THEY GIVE UP).
THUS, ACCORDING TO THIS LOGIC OF MINE. THERE WILL BE LARGE AMOUNT OF BUY ORDERS AT 0.7700 - 0.7750.
THIS PATTERN OCCURRED ON THE W1. THE HIGHER THE TIMEFRAME THE MORE RELIABLE.
TRADE CANCELLED IF NOT TRIGGERED WITH 2 WEEKS.
TRADE CANCELLED IF PRICE REACHED NEAR 0.7900.
NZDUSD selling off fast
EURUSD selling off not so fast, but still selling off and continuing its bearish trend.
GPBUSD closed at a new high and above 1.5000, could it be exhaustion (last desperate attempt to see new high)?
Thus, AUDUSD could face short term bearish momentum. IF H4 closes below 0.7650 we may have to reconsider our stand on this. But i am still believing in this M1 setup to work out. It is one of my highest probability trading setup.
Will look to scale in / enter long @ 0.7600 if prices manages to get there.
Upper white line is a strong weekly resistance
Lower white line is a strong monthly support
Price is right at the middle of both lines
Upper gray line is a daily resistance
Upper gray line is the daily resistance from previous chart
Lower gray line is 4H support
-Go long until weekly resistance if price is rejected by 4H support, place stop below 4H support
-Go long until weekly resistance if price breaks daily resistance, place stop below daily resistance
-Go short until weekly support if price is rejected by daily resistance, place stop above daily resistance
Any discussion is greatly appreciated :)