A breakout of 1400 pips after low volatility which pause the markets into a bearish spike in channel is a bullish continuation signal !
As the bulls broke three key formations
1. The monthly mvwap
2. The weekly mvwap
3. The bearish diagonal trendline
After a breakout
As I said there are rules to this and the market moves in phases
1. Consolidation
2. Breakout
3. Pullback.
4 channel
5. Continuation or reversal
So we can see clearly each phase here for your education number them on you chart as the market is in phase 3- 4 a pullback into a range ( aka spike n channel) currently! Learn to identity these.
Also box each range and label then accordingly.
( Why listen cause I was to do so my some crafty elite traders and was drilled and tested on how fast I could identify each. How do this help u! When you know each stages you’ll start to notice their makeup doesn’t change and you’ll start to notice price discrepancies within the phase or if they are out of place thus hinting to a potential future reversal!… you can find. My post where I’d talked about these phase in more detail)
Which ended in overbrought condition that the market is resting f but not tremendously Overbrought to send price crashing as price made a base ! which also is a bullish signal.
Next a bearish trend bar without sequential follow through as the bulls forced a range of 11 weeks( base) thus weakening the potential of a bearish pullback by placing more bar away from the selling pressure.
Next
We have a test of commitment where the market test the intended direction by freeing up sell order above and convince retail traders to short placing their sl in a forced zone in which we call the dumb money zone where the market is clearly making higher low from a w correction seen in the circle here! Where this zone is where they exchange the sell order u give them for buys for them by making the market look bearish. - market psychology you can also learn more about this on my page as well as 80% of trading is psychology!.ll
Next we see the daily average turned resistance to supportive while price is ranging.
Again the mvwap is the best indicators to place on your chart as it tells a lot about market agenda!
My interpretation of it here.
The daily is the most valuable. So to see it ease from over price to under tells me they are ready to start their moves as it shows price is too cheap as when price is above it it means price is too costly here we can see the 4hr uptake of it! So the 4hr and daily is under price at support !
So if we zoom out well notice that the overall market is cheap in price. So the rule - buy cheap and sell high! So if the average is under price when the market is cheap this means they are buyers and not sellers!
So the highest probability is we will have a nice bull run something like gu
Gl!
As the bulls broke three key formations
1. The monthly mvwap
2. The weekly mvwap
3. The bearish diagonal trendline
After a breakout
As I said there are rules to this and the market moves in phases
1. Consolidation
2. Breakout
3. Pullback.
4 channel
5. Continuation or reversal
So we can see clearly each phase here for your education number them on you chart as the market is in phase 3- 4 a pullback into a range ( aka spike n channel) currently! Learn to identity these.
Also box each range and label then accordingly.
( Why listen cause I was to do so my some crafty elite traders and was drilled and tested on how fast I could identify each. How do this help u! When you know each stages you’ll start to notice their makeup doesn’t change and you’ll start to notice price discrepancies within the phase or if they are out of place thus hinting to a potential future reversal!… you can find. My post where I’d talked about these phase in more detail)
Which ended in overbrought condition that the market is resting f but not tremendously Overbrought to send price crashing as price made a base ! which also is a bullish signal.
Next a bearish trend bar without sequential follow through as the bulls forced a range of 11 weeks( base) thus weakening the potential of a bearish pullback by placing more bar away from the selling pressure.
Next
We have a test of commitment where the market test the intended direction by freeing up sell order above and convince retail traders to short placing their sl in a forced zone in which we call the dumb money zone where the market is clearly making higher low from a w correction seen in the circle here! Where this zone is where they exchange the sell order u give them for buys for them by making the market look bearish. - market psychology you can also learn more about this on my page as well as 80% of trading is psychology!.ll
Next we see the daily average turned resistance to supportive while price is ranging.
Again the mvwap is the best indicators to place on your chart as it tells a lot about market agenda!
My interpretation of it here.
The daily is the most valuable. So to see it ease from over price to under tells me they are ready to start their moves as it shows price is too cheap as when price is above it it means price is too costly here we can see the 4hr uptake of it! So the 4hr and daily is under price at support !
So if we zoom out well notice that the overall market is cheap in price. So the rule - buy cheap and sell high! So if the average is under price when the market is cheap this means they are buyers and not sellers!
So the highest probability is we will have a nice bull run something like gu
Gl!
