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After a rally in price, we’ve seen the rejection when price touched the resistance, where sellers tried to push the price down. Though buyers didn’t give up; they did a good fight whenever the sellers tried to push the price down further. Eventually, sellers had to gave up because they didn’t want to risk a fight with strong and aggressive buyers. As soon as they stopped fighting, buyers again pushed the price up but buyers had to face an another rejection from the area where the last price rejection happened. It was a supply area(where majority of sell orders sit) that’s why price got rejected whenever price tried to breach that area. That given the sellers confidence; aggressive sellers stepped in and pushed the price down. After the drop in price, we’ve seen an accumulation down below where price spent almost 2 hours before the price shot up; where sellers couldn’t push the price down further. It also made a higher high after the accumulation. Sellers who shorted from up there might have bought back and this would have added fuel to the fire.
I think this time buyers will able to breach the previous supply area. Because the price tested that level 2 times. And also rejection candles weren’t that strong; which means there wouldn’t be enough selling pressure from that area when price reaches that area again.
Thank you for your support, I appreciate it.
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
After a rally in price, we’ve seen the rejection when price touched the resistance, where sellers tried to push the price down. Though buyers didn’t give up; they did a good fight whenever the sellers tried to push the price down further. Eventually, sellers had to gave up because they didn’t want to risk a fight with strong and aggressive buyers. As soon as they stopped fighting, buyers again pushed the price up but buyers had to face an another rejection from the area where the last price rejection happened. It was a supply area(where majority of sell orders sit) that’s why price got rejected whenever price tried to breach that area. That given the sellers confidence; aggressive sellers stepped in and pushed the price down. After the drop in price, we’ve seen an accumulation down below where price spent almost 2 hours before the price shot up; where sellers couldn’t push the price down further. It also made a higher high after the accumulation. Sellers who shorted from up there might have bought back and this would have added fuel to the fire.
I think this time buyers will able to breach the previous supply area. Because the price tested that level 2 times. And also rejection candles weren’t that strong; which means there wouldn’t be enough selling pressure from that area when price reaches that area again.
Thank you for your support, I appreciate it.
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.