2. Possible buying climax: Look at that , is incredible, in a up bar with wide spread closing at the middle of the bar, this is weakness, and need to be confirmed in the next bar, but evene if this not happend, you know that there is some selling that needs to be tested.
3. No demand: This bar do a incredible job, because is the first bar after the real weakness hit the market (the buying climax) in close above the close of that bar, and it did with literaly no , so, this is a confirmation of a weak market, why if you have demand in the market, the is not high or at least average?
4. Trap up move: This bar is seen after a no demand and a possible buying climax, this bar is the final confirmation of the weakness, you can say that this bar is caused by the brexit effect, but, if you read the chart 4 hours before you had a clear zone of distribution. This bar closes lower that the lows of the buying climax. This bar also contains high , so, be aware if there is some strenght you need a test or a no supply bar.
5. Gotcha bar: This bar is a down bar with a ultra wide spread, closing at or near the lows of the bar with the higher seen in the chart, so, be aware because this bar also contains a lot of demand, and that demand need to be tested to raise a market.
6-7. Supply coming in: Three up bars with wide spread closing off the highs or at the middle with high only indicates one thing; supply still in the market. But you are now in a zone that also contains demand by the gotcha bar, so, you need a clear breakout of the low of the bar 5 and bar 1 (where the demand hit the market).
8. Up-thrust: Up bar with wide spread closing almost where it opens with high , a clear bar that was absorbed by the supply. This bar will be our trigger to open a long position.
9. Test: This bar is a average-wide spread down bar closing almost at the highs, testing if there is some supply in the market at that zone, because the smart money sell in this bar, and if the is average-high, they know that other players are selling too, but, in this case, nobody (at least nobody in the smart money) wants to sell, you can see it in the low . The next bar confirms this signal.
10. Strenght coming in: Down bar wide spread with high closing in the middle of the bar, this bar says that the demand in that zone is absorbing the supply. This bar is seen in the same zone of previous strenght (the test) and in the same song as the signals 5-6-7, so, if there are no supply in this area, you now know that you got strenght. Wait for a confirmation and new signs of strenght in the future.
Well, im waiting in the 5M-15M timeframe to a SOS (sign of strenght) above the pink line (the last sign of weakness seen in this chart) to open a long position and my take profit will be the next pink bar. In this timeframe i cannot see a clear sign to open a position now.