After the breakout, the market comes back to retest the resistance
level that becomes support before it goes up.
The pullback is your second chance to join the buyers if you miss the
But Pullbacks don’t always occur after every breakout, when it occurs,
it represents a great opportunity with a good risk to reward ratio.
What you have to remember is...
Ranging markets are pretty straight forward, they are often called
sideways markets, because their neutral nature makes them appear to
drift to the right, horizontally.
When the market makes a series of higher highs and higher lows, we
can say that the market is trending up.
But when it stops making these consecutive peaks, we say that the
market is ranging.
How to draw trend lines?
To draw a quality trend line, you will need to find at least 2 minimum swing points, and simply connect them with each other. The levels must be clear, don’t try to force a trend line.
Don’t use smaller time frame to draw trend lines, use always the 4H and the daily time frames to find obvious trend lines.
In downtrend you connect the...
#5 SWING POINTS ( SWING HIGH AND SWING LOW )
As you can see on the chart, each swing point consists of three bars.
Swing high - the middle bar has the highest high and on both sides there are bars with lower high.
Swing low - the middle bar has the lowest low and and on both sides there are bars with the higher low.
Take a look at the chart and see why swing...
Hello to all Trading viewers, I hope you are having a nice day. :)
This is what I think it could happen.
EUR/GBP is on a week support. I am waiting for the break of trendline and when it happens and pulls back I will find an entry on lower time frame.
Have a nice day and greetings from Croatia!