The higher-timeframe picture resembles the following:
• Weekly TF: Current trading action is taking place around a weekly decision-point supply area at 0.80328-0.79780; a break above here could very well indicate buying strength from around the weekly demand area below at 0.79631-0.78623.
• Daily TF: A beautiful to- the-pip reaction has been seen around the top base of daily demand at 0.78862-0.79206. It is very likely we will now see a visit of daily supply above at 0.80328-0.80024.
Some beautiful moving price action has been recently seen on the 4hr timeframe, a break below the 4hr demand area at 0.79615-0.79704 did indeed happen, along with a push down to the 4hr R/S flip level at 0.79491, price stalled there for quite some time, then dropped down to the 4hr demand area below at 0.79232-0.79361. Our pending buy order that was originally set above this level at 0.79378 was stopped out within a pip!!!! So we missed this whole move.
The purple above current price at the moment (0.79964-0.79905) is likely a ‘dummy’ (a dummy supply attracts orders from traders when pro money’s only intent is to fakeout above or below it ) supply. Traders on multiple timeframes will be watching this 4hr dummy supply area, and of course there will be a lot of orders sitting there. Traders will more than likely see the round number 0.8 above, and think, great stuff, I’ll place my stop-loss order a few pips above there! Pro money certainly knows this, and will no doubt take advantage of the liquidity offering. Think about it for a minute, traders trying to sell will have their stops just above the round number, once these stops are filled (stopped out), they become buy orders, perfect for pro money to sell into, and also not forgetting the breakout buyers’ orders, once again, great for pro money to sell into.
However, taking all of this into consideration, notice the 4hr supply area above at 0.80264-0.80133, this area is beautifully located within both daily supply and a weekly decision-point area (for levels see above), so a further push may be in order right up to the aforementioned 4hr supply area, this further push will entice more breakout buyers to buy, thus fuelling pro money’s likely sell off at the 4hr supply area (levels above). So do keep an eye on the following areas for developing price action: 0.79964-0.79905/0.8/0.80264-0.80133.
Pending/P.A confirmation orders:
• Pending buy orders (Green line) are seen just above demand (0.78602-0.78320) at 0.78641. The reasoning behind setting a pending buy order here is due to its current location on the higher timeframes. This 4hr demand area is just above daily demand at 0.78117-0.78533 and also just within the upper area of weekly demand at 0.76931-0.78623.
• The pending buy order (Green line) set just above 4hr demand (0.79232-0.79361) at 0.79378 has been stopped out within a pip!
• No P.A confirmation buy orders (Red line) are seen in the current market environment.
• Pending sell orders (Green line) are seen just below a supply area (0.80264-0.80133) at 0.80110 as this area is beautifully located within daily supply at 0.80328-0.80024, and also deep within a weekly decision-point area at 0.80328-0.79780, and not to mention the round number 0.8 is begging to be faked up into the aforementioned 4hr supply area, think of all that liquidity for pro money!!
• No P.A confirmation sell orders (Red line) are seen in the current market environment.
• Areas to watch for buy orders: P.O: 0.78641 (SL: 0.78288 TP: Dependent on how price approaches) P.A.C: No P.A confirmation buy orders are seen in the current market environment.
• Areas to watch for sell orders: P.O: 0.80110 (SL: 0.80295 TP: Dependent on how price approaches).P.A.C: No P.A confirmation sell orders are seen in the current market environment.