Today's candle was a bullish candle, however, it was not a strong bullish candle. A strong bullish candle would have closed at or very close to the high of the session. The wick at the top of the candle indicates some selling pressure. A strong bullish candle would have little to no indication of selling pressure.
Notice that today's candle closed very close to the high of the bullish candle of three days ago. Also, notice the upper wick on the candle. This upper wick also indicated there was some selling pressure. The close today near the high of the candle from three days ago confirms there is some resistance at this price level as such I have added a red resistance line.
So how do we make trade decisions based upon this candle?
Since there is some resistance at 1.09273 and since the major and intermediate-term trends are still down I am not looking to take a long position on this pair. I am waiting for a good opportunity to enter a short position.
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Notice that today's candle closed very close to the high of the bullish candle of three days ago. Also, notice the upper wick on the candle. This upper wick also indicated there was some selling pressure. The close today near the high of the candle from three days ago confirms there is some resistance at this price level as such I have added a red resistance line.
So how do we make trade decisions based upon this candle?
Since there is some resistance at 1.09273 and since the major and intermediate-term trends are still down I am not looking to take a long position on this pair. I am waiting for a good opportunity to enter a short position.
PLEASE GIVE ME A THUMBS UP if you agree with this trading tutorial to help me become a TOP AUTHOR. Also please leave a comment on how I can improve the tutorial.
Want a second opinion analysis on a pair you are looking to trade? Feel free to send me a private message I enjoy sharing.
