Eurusd rebound to test resistance around 50% of strong red candle on 4hr chart.
That red candle on 4hr chart originated from top resistance on weekly (see idea attached)
On smaller time frame as price goes close to that 50% level of red candle:
Sellers started coming in strongly
1 reversal candle- opened with gapping up but closed down and next gapping gapping down
2 opened higher but closed down and gapping down again
3 gapping down and red closed below
4 and top of formation- single candle left behind by gapping separation and two red candles with flat bottom- no more buyers- sellers only.
That red candle on 4hr chart originated from top resistance on weekly (see idea attached)
On smaller time frame as price goes close to that 50% level of red candle:
Sellers started coming in strongly
1 reversal candle- opened with gapping up but closed down and next gapping gapping down
2 opened higher but closed down and gapping down again
3 gapping down and red closed below
4 and top of formation- single candle left behind by gapping separation and two red candles with flat bottom- no more buyers- sellers only.
