Quick posting before London open or/and The Owner of this thread join in.
AUDUSD, this example is another boring day trading by looking at PA.
Point I want to make is , look at PA move from one level to another level. It will come and revisit the same level after the move up. Therefore, don't panic trying to chase price, let it pull back, catch better price there with small SL and less stress.
Then, you have to see formation of the whole one day chart to understand it is making HH, HL. even tho'', it has yet to cross 200EMA.
That's why you need to draw all SR & TL from previous day to know where price likely to go NEXT.
Once you know that, you wait for pullback at previous level.
Limited time to write all of those candles story, but lets focus at 8, 9, 10.
At No. 8, price aleady established support because PA at 2,3,4,6. You are safe to take long there. PA making HH HL. No. 8 cannot take out No. 3 ( PA above 1.00125)
At No 9. PA is testing and knocking 1.0050 for the third times (previous attempt 5 & 7) Then it move back to same level as No.8 ( now become 10), five candles at No.10, none of those can go lower than any of No.8 candles low. This is confirmation test for this level to hold ( With five pevious attemp to test this level No. 2,3,4,6,8, then it's confirmed now No. 10 will bounce from this Support level
( Support or resistence will become stronger with many attempt testing it)
since it has establisehed strong support, without hesitation it goes stright up to No. 11, by passing level where no 9 is.
No. 12 is support established by No. 5,7 & 9. so it's easy to go up since 200ema below it.
No. 13, you hit the ceiling of 800 ema.
Wish could detail more, but my writting is not very good.
Thank You for reading, hope you understand what i'm trying to explain here.
If you need any clarification, please ask. If i cannot answer, then some senior people here will assit, because I want to learn to be succesful in Forex.
Have a good trading day.
Gibril The Newbie
AUDUSD, this example is another boring day trading by looking at PA.
Point I want to make is , look at PA move from one level to another level. It will come and revisit the same level after the move up. Therefore, don't panic trying to chase price, let it pull back, catch better price there with small SL and less stress.
Then, you have to see formation of the whole one day chart to understand it is making HH, HL. even tho'', it has yet to cross 200EMA.
That's why you need to draw all SR & TL from previous day to know where price likely to go NEXT.
Once you know that, you wait for pullback at previous level.
Limited time to write all of those candles story, but lets focus at 8, 9, 10.
At No. 8, price aleady established support because PA at 2,3,4,6. You are safe to take long there. PA making HH HL. No. 8 cannot take out No. 3 ( PA above 1.00125)
At No 9. PA is testing and knocking 1.0050 for the third times (previous attempt 5 & 7) Then it move back to same level as No.8 ( now become 10), five candles at No.10, none of those can go lower than any of No.8 candles low. This is confirmation test for this level to hold ( With five pevious attemp to test this level No. 2,3,4,6,8, then it's confirmed now No. 10 will bounce from this Support level
( Support or resistence will become stronger with many attempt testing it)
since it has establisehed strong support, without hesitation it goes stright up to No. 11, by passing level where no 9 is.
No. 12 is support established by No. 5,7 & 9. so it's easy to go up since 200ema below it.
No. 13, you hit the ceiling of 800 ema.
Wish could detail more, but my writting is not very good.
Thank You for reading, hope you understand what i'm trying to explain here.
If you need any clarification, please ask. If i cannot answer, then some senior people here will assit, because I want to learn to be succesful in Forex.
Have a good trading day.
Gibril The Newbie