Forex is a market where a lot of manipulation occurs to get people constantly on the wrong side of the market to grab the liquidity needed to execute their big move.
The short-term bias of this pair is bullish, when a big drop happens it will be followed by a healthy correction often.
Weekly ended in a doji, daily ended bulllish which means buyers are coming back in the market.
So the bias is bullish and a lot of retailers will be taking long positions but if everyone has the same direction the price will not be moving that way because buyers and sellers need to be in balance. If smart money wants to go up and retailers follow their bias, it first needs to grab liquidity in a form of manipulation to get their big orders filled. This is why patterns and trendlines fail a lot. Example: If they want to go up, they sell first to get price under a previous low, under this low, a big amount of sell-stops is waiting from the retailers, they trigger their positions, which are the sell orders they use to get their bigger buy orders filled. Their orders are way bigger which causes the market to shoot up very fast, often it happens that it goes so fast that they don't have the time to get rid of their manipulated sell positions so we get imbalances, mitigation, accumulations and distributions that helps us to find out where the market wants to go.
About this trade:
Price has been bullish for the last hour so a lot of retailers are stacking their buy orders, a trendline has been made with 3 nice touches. It would be too easy to trade if the price would just continue going up, so we have to wait until the manipulation happens before we enter our trade. So it is possible that the price will break the trendline to get people on the other sell side and that in combination with the stoplosses taken from the buys means they need to sell back their position and this is the liquidity smart money uses to make a big impulsive move. Also lining up with an orderblock makes it a good chance. Don't be the liquidity but follow it.
The short-term bias of this pair is bullish, when a big drop happens it will be followed by a healthy correction often.
Weekly ended in a doji, daily ended bulllish which means buyers are coming back in the market.
So the bias is bullish and a lot of retailers will be taking long positions but if everyone has the same direction the price will not be moving that way because buyers and sellers need to be in balance. If smart money wants to go up and retailers follow their bias, it first needs to grab liquidity in a form of manipulation to get their big orders filled. This is why patterns and trendlines fail a lot. Example: If they want to go up, they sell first to get price under a previous low, under this low, a big amount of sell-stops is waiting from the retailers, they trigger their positions, which are the sell orders they use to get their bigger buy orders filled. Their orders are way bigger which causes the market to shoot up very fast, often it happens that it goes so fast that they don't have the time to get rid of their manipulated sell positions so we get imbalances, mitigation, accumulations and distributions that helps us to find out where the market wants to go.
About this trade:
Price has been bullish for the last hour so a lot of retailers are stacking their buy orders, a trendline has been made with 3 nice touches. It would be too easy to trade if the price would just continue going up, so we have to wait until the manipulation happens before we enter our trade. So it is possible that the price will break the trendline to get people on the other sell side and that in combination with the stoplosses taken from the buys means they need to sell back their position and this is the liquidity smart money uses to make a big impulsive move. Also lining up with an orderblock makes it a good chance. Don't be the liquidity but follow it.