DislikedHi Pi piper,
EURJPY discussion purpose.
After a strong leg up, price is taking a break waiting for the 50 boss to flatten a bit. The slope of 50 boss has been holding price down. Unless 125.50 taken out, up trend still intact.Ignored
Look closely at your own chart – the chart you posted. You have drawn two TLs, the top TL sloping down and the bottom sloping up to form a horizontal wedge. When you can draw a wedge like this, the market is telling you it is directionless – it is going sideways – any bias up or down is finished at this point.
Look at what this tells you. The buyers cannot take price any higher because the sellers are jumping on them at LOWER prices. The buyers then get their revenge on the sellers because they start buying at HIGHER prices. It is a good old fashioned tug of war – leave them to it UNTIL one of them comes out the winner.
Now look closer at what is going on inside this wedge. This is Nicola’s (elitejets) favourite pattern. Can you see the coil forming? As prices near the apex of the wedge, prices are becoming increasingly compressed (absorbing more and more energy). This is like a spring being compressed. What happens when you let go of a compressed spring? The same thing happens with prices in a wedge – coil formation. On a previous post, I showed how to determine the target from such a formation, go back and find it then WATCH this closely
15 YEARS OF PASR ON FOREX FACTORY!
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