Level 1 - Strong Bullish move from the Market Makers after a 'W' reversal on the Daily Low (Support)
Level 2 - Frequent Market consolidation and then a weaker bullish move by emotional traders without Market Maker support
Level 3 - Less Consolidation and potential 'M' or Double Top formation. First peak has reached Weekly/Daily High (resistance)
I trade based on 3 Levels as described on the chart.
Level 1 - There was a W reversal on the Daily Low which led to a strong bullish move by the Market Maker (MM)
Level 2 - There was a consolidation (which also can be seen as a correction) that then led to a weaker bullish move that was market-driven by emotional traders, in the absence of market makers...
Price is forming another Double Top on the GBPCAD (H4) anticipating to sell at the Weekly High.
The weekly High is a strong resistance zone because historically and recently, price kept falling from the price 1.77820, therefore another fall is anticipated.
There is also High Impact news on the GBP affecting consumer confidence and there is an anticipation that...