Everyone is bullish
because of the hammer
on the daily chart
, if so then why was the next day a down bar? They were selling at the top after squeezing the shorts and now prices will drop because all the sellers are stopped out or they went long at the top. The EU etf FXE
was a "Bullish Engulfing
Pattern" on high volume
on the daily so most traders were bullish
, but you have to ask yourself if all that high volume
was buying then why was the next day down?
I have 2 well defined high volume
areas to play against. The top area is no longer in play because prices are much lower so now we play against the lower Very high volume
zone. Prices did not pull back much during the end of the day so that is another warning that prices are going much lower to the weekly trend line
I'm going to place my sell order at 1.36200 or a bit lower with a tight stop at 1.36300 area with a target at the lows. I will be adding in as this trend progresses.