In the previous posts we considered the process of Price DISrespecting a Shooting Star formation. That is, when price moves HIGHER then the top of the Shooting Star "Antenna", and by this - the shooting star indication of decline (of price) is ignored and basically OVERTURNED.
Let us consider GBPAUD as EarnNow has suggested.
As Always the Difficulty is to Recognize such dis-respect as early as possible AND correctly of course.
Now we can compare the conditions at the first "disrespect" suggestion above (Picture)
and the Present situation - a day later. Either an insidious and treacherous trap has been set for the Bulls
or in fact a breakout has occurred.
DislikedEarnNow Doesn't it look to You that GBP/AUD is in a Breakout Mood now ... It Seems to Be doing exactly what you have called a strong omen of a Breakout = when a Hammer or a Shooting Star is DIS-Respected by the Price. {image}Ignored
Disliked{quote} The price will usually test a shooting star (see chart below). Sometimes it will go half way (half the size of the candle that is) and then resume its downtrend. In rare occasions it could even exceed the high of the shooting star (to trap a few breakout hunters) and then drop like a stone. So let's wait and see how it goes {image}Ignored
As Always the Difficulty is to Recognize such dis-respect as early as possible AND correctly of course.
Now we can compare the conditions at the first "disrespect" suggestion above (Picture)
and the Present situation - a day later. Either an insidious and treacherous trap has been set for the Bulls
or in fact a breakout has occurred.
Siddhartha G