EurUsd (h1) Scenario 2 detailed

FX:EURUSD   Euro Fx/U.S. Dollar
A detailed description od scenario 2 (rejection)

If the former Fair value @0869ish gets rejected due to a lack of demand ie. no one is
following price any higher , and we make a series of lower highs ie. former fair value is now considered unfair high
we might head down to test A) the lower channel line and /or B) the fair value of the recent level where price found balance @073ish ,aswell as we have a potential upward trendchannel in place (which btw             . is nothing but a tilted trading range with in this case rising demand) we do have the limits of overbought and oversold lines and a middlepoint (fair value which rises) the MP             aswell did got tested and rejected which ads to weakness.

play a rejection of MP             and former fair value
testing lower channel line / fair value

If price tests a former fair value but gets rejected due to a lck of trading going on we have
an auction market theory which states lack of trading interrest will propell price to a level
where most traders agree on price again, in this case demand steps up and that demand can/could be found
at the former fair value and or the lower channel line, so basically price is advertising itself all the time in order to fasciliate a trade and if those trades cant be generated any higher it will go down ;) to attract buyers and new trading interrest

any lower high can be used as an entry (sell stop)
with a hard stop @1.0935 tighter stops should be used @lower TFs
target 1 @077ish
target 2 @073ish

United States
United Kingdom
Home Stock Screener Forex Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Account and Billing Sign Out