An important element of studying price action is often ignored, even though it is perhaps the most important one - at least for swing traders.
WHO IS IN CONTROL OF THE MARKET AT THIS TIME?
After all we all want to trade in the direction where the strength lies.
In this example of USDJPY, note how large the recent bullish candles are. This shows momentum lies with the bears.
Note also that these large candles close very near to the low of their range. This shows the lack of bulls.
Don't miss the fact that the pullbacks are quite shallow - another pointer.
See on the chart, the difference between the time taken by both sides to attain the same price points.
None of this is pointing to a possible trade right away, but it does help to point you in the direction where you should be looking.
Always use sound money and risk management and stay patient in all your trades.
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What do you think about this post? Please comment and share your thoughts!!
WHO IS IN CONTROL OF THE MARKET AT THIS TIME?
After all we all want to trade in the direction where the strength lies.
In this example of USDJPY, note how large the recent bullish candles are. This shows momentum lies with the bears.
Note also that these large candles close very near to the low of their range. This shows the lack of bulls.
Don't miss the fact that the pullbacks are quite shallow - another pointer.
See on the chart, the difference between the time taken by both sides to attain the same price points.
None of this is pointing to a possible trade right away, but it does help to point you in the direction where you should be looking.
Always use sound money and risk management and stay patient in all your trades.
If you like my analysis, please give it a “thumbs up” and follow me to get even more awesome content.
What do you think about this post? Please comment and share your thoughts!!