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tokelohomi
Apr 16, 2023 12:32 PM

Volatility contraction 

British Pound/U.S. DollarFXCM

Description

1.22741 which happens to be the first drive, drove price up to give us a liquidity pool which also gave sellers the takeover to correct the inefficiency and to provide the second drive. The second drive advanced in a volatility contraction pattern, the contraction created a swing high high which the got broken by the volatile move. Then eventually a liquidity sweep took place, the market created a small distribution phase to drive price to the demand region. Now price looks to have respected the zone and simultaneously provided a third drive to complete the three drives. This gives us the idea of a young bullish move to make a pullback to the fair value gap, this pullback is expected to reject price to the demand zone…
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