price action trading

[saakk]

Yes sir..............

 

[saakk]

Breakout to downside and now price is trying to go back in range.

 

[saakk]

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Since that bar(14.20) mentioned in the image is at 10 EMA. And price previously crossed 20 MA from above to below it is in position of price retracement after trend wave.
It is a best spot to go short according to my wave pattern setups.

14.45 bar also at the same spot mentioned above.

Today seems a normal day after previous terrible week........

 

[saakk]

Read a important piece of information on a site, thankx to one of the TJ member.
After understanding Bear bars, bull bars, reversal bars etc..... you got to understand the market structure, environment in which bar is taking place unless you can't figure out that you will be susceptible to take low probability trades, infact a wrong trade all together, Because any bar is as good as it environment, A Bull reversal bar can be a very strong indication to go long in uptrend but that same bar has very less significance in down trend and going long above it will trap you to the wrong side no matter how strong bar look vice verse for bear bar in uptrend.

 

[saakk]

They have not did you took the trade?

 

[saakk]

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[saakk]

What i have understood "How does market works" (I don't know if its the only way, but just what i have observed), i have read about mean reversion in price but never paid enough attention to it, But yesterday after reading about market structure it all suddenly started making sense that price do look to reverse towards its average or average range (EMA acts as magnet), that is the reason we have so many false breakout and even if breakout is successful price do come and check the breakout area usually, if that area is defended price turnaround and continue with it trend, if not; we then have a failed breakout, off-course mean reversion is not in effect when price is trending and may be looking for new levels but out of 100% how much time price trend and how much time price stay's in range.

Take a exm. of today: price opened gap up, take gap as 1st bull bar and opening bar as 2nd bull bar, its a one bar breakout and now price is trying to test its breakout area (PD high) if price is strong enough it will turn back and will go and test intraday high and try to break it, if not it might come down back and test the breakout area again. Its all come down to demand and supply.

Just my observation, nothing specific.

 

[saakk]

Do we will get a test of breakout area and a place to enter long???

 

[saakk]

Ultimately tight liquidity will slow down the economy more and it will make currency more weak.

 

[saakk]

No clues...........

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