When supply ceases to exist, demand becomes higher. The highlighted zone shows area of REDUCED Supply, not to be confused with buying (in this case, by large institutional traders). Now here is the complicated part, within that zone, smaller players are placing buy trades. When supply dwindles, demand go up and vice-versa. We are ultimately short on this pair, the...
Can you figure out the differences in the three pinbars highlighted...bearing in mind that the shape, length, or colour of the pinbar does not matter in this case.
Pinbars occur in the market as a result of two scenarios:
1) When institutional traders place large positions in order to reverse what we call a "trend"
2) When institutional traders take profit off...
price has formed a bearish pinbar after showing signs of a sell-off. there are multiple reasons why pinbar forms in the market, it is always best to understand what preceeds these candles before trading them.
Hopefully, my annotations are simple enough. It is classic Sam Seiden but with a twist from my own experiences as a trader. I entered this trade when price was in the supply zone and i will be looking to close it in the next 2 hours...depending on the candle formation.
Price is in a downtrend, the choppy price movement upwards signifies to me that institutions arent place any major orders. Price has formed a new lower high after being rejected by a previously created Supply zone. I anticipate price will continue downwards.
Head and shoulder neckline is broker, price is on its way to fresh demand zone. i anticipate profit-taking/retracement from there back into the freshly created supply zone before further downward momentum. I will be entering a short position once price is in the highlighted supply zone (in yellow) with SL slightly above.
Evidently, price is in a downtrend. "Never go against the trend" immediately comes to mind. While price is currently trending upwards on the lower time-frames, which i have highlighted by the demand zones, i will ultimately be shorting this pair once price enters Supply 2 and shows signs of a rejection. SL will be a few pips (5-10) above the red zone and TP will...
This pair is showcasing lots of confluences to the upside. Price is respecting the inner bullish trend line, and we've also seen a strong bullish action at the 61% fib level, my EMAs are diverging upwards and all of these signify to look for long only entries.
A break, retest and bounce from that bearish trendline and a cross over the immediate zone could potentially see this pair continue further. personally, i'd wait for price to cross over the 0.75 area for a long, and below 0.74 for short. Will have to wait for the monthly close to get an idea of the direction this pair is headed.