After the good GBP news 09:30 today buyers had a chance to get in again at a cheaper price. Now price is hitting a confluent area of fibonacci, structure and demand. We are waiting for a confirmation of continued strength to enter here. Best to find it on the 5M chart
This is NOT a countertrend trade as it may look, its still with the trend on the hourly, we want to enter on the retrace, pinpoint the entry on the 5M chart. Only if sellers dissapear and buyers remain
nanetto
⋅
How could you know that the volume increasing is from buyers?
naviafra
⋅
@nanetto, Thanks for asking. Strength is always revealed on down candles, bearish candles, and weakness is always shown on green candles.
You can see this clearly on the 5M chart. Look at this pic
nanetto
⋅
@naviafra, Thank you very much for the explanation. My analisy is different, anyway it's much interesting. Wich indicator you use for volumes and wich parameters if i can ask?
naviafra
⋅
@nanetto, Volume is volume, there is no parameters. I do not use any indicators. I use EMA14 and 50 not to guide my trading, in this case, on EMA14 there should be sellers present, I am just using this as I know a lot of beginner trades place trades with the EMA, and if there is no sell pressure on the EMA14 in this case, then it means it wont hold. I have a telegram group in my profile you can ask tons of questions there i am happy to answer
nanetto
⋅
@naviafra, Why do you think (or know) that EMA 14 is used by sellers? Why not by buyers? Thank you for answering
naviafra
⋅
@nanetto, Because on the 5M the EMA14 is trending bearish, therefore attracts sellers
nanetto
⋅
@naviafra, Thank you. So EMA 14 is not used by sellers, at all.. you're telling me that EMA14 is often used by traders to make trading decisions, but i can not still understand the sentence "there is no sell pressure on the EMA14 in this case, then it means it wont hold" . How can you see there is no selling pressure? Many thanks again.
naviafra
⋅
@nanetto, I havent seen it yet, I am waiting for the selling pressure to dissapear. It's very difficult for me to explain volume spread analysis and wyckoff theories here, this is studies that takes months to comprehend, it's impossible for me to explain it in a comment field on tradingview. But if prices comes close to resistance, and there is no sell pressure (any type of resistance) that usually means it wont hold and resistance will be broken
naviafra
⋅
@nanetto, Do not get me wrong, I am not saying this is a long just yet, a lot of pieces must fall into place, but I am seeing ALOT of buying (accumulation) in this area and it is VERY confluent with structure, trend line, fibonacci, demand zones etc