How To Read Signals From A Chart

#GBPUSD is plotting the bullish story:

1) Extremely high-volume down-move.
2) Too big upwards-pullback. It tells that high volume (1) contains the hidden strength.
3) SLKB under the previous minor low with closing on the top.
4) DB breaking out above red resistance line (rising volume = effort of bulls to breakout)
5) testing the breakout effort level (setup for entering longs). Note, C approx = (A+B)/2
6) DB and breaking above the center trend-line

1.3 round number and major resistance are near. We have strength on the background.
-) The first attempt to break above 1.3 should follow.
-) Then market will be vulnerable for SLKT, minor Trap.
-) Then the second attempt to break above 1.3 should follow.
This is the most expectable scenario fro me.

#NG market as requested by Rushi

Top daily chart:
I plotted two lines on 1D. We had SLKT+SB from 2.9. SB was a Bearish Cha Cha and a priority for shorts.

Recently, we got SLKB.

Let's switch to 4h (bottom left) to explore the recent SLKB in more details.
1/ Panic as price broke down below 2.3
2/ EVRB (slow bearish progress amid high effort)

With strong rally today, we got a confirmation for strength hidden beneath PANIC+EVRB pattern

By the way, today we have a nice setup for short-term Selling.
Switch to bottom-left 5m chart.

3/ Fake breakout with triggering of SLs of sellers above 2.5
4/ No interest in moving further up
5/ Short here.

Before taking a swing trade on daily chart always note the following:
1. Fundamentals are the leading Indicators
2. Price Action the lagging indicator.

nevertheless; they interchange positions during chart analysis and now price action become the leading indicator.

***once you see your set up complete; don't just jump on the trade, go back to the fundamentals and analyse the force behind the set (thus you interchange positions again; making the fundamentals leading indicator). If there is important fundamental expected the following trading day; wait for the data before entering the trading...this will save you from possible pullback if the data is unpleasant.

#happy trading

EURUSD
A and B = these are mid-term range lines. This range was formed previously between 1.07 and 1.09.


1/ This is a Demand-Bar. Note the volume. It represents the effort of bulls to break out above the resistance line.
2/ Development of the bullish impulse. The resistance is near. This is C target line, it could be calculated as C= A+ (A-B) = 1.11

3/ Oh, Low Volume Zone, this is an Indecision moment.

4/ Opening on Tops, Long Tail Down. I suppose it was a Bearish activity that pressed price down. Next two bars - down, confirmation of the supply is entering.

5/ SLKT. Price produced fakeout above 1.111, attracted Breakout-bulls in Trap and Triggered SLs of Sellers above C line. This is a very bearish movement. Expect the decline from this moment as Chart plotted bearish sequence around 1.111


6/ Some support entered around old support 1.107 line A. Spike in volume could be interpreted as the minor Panic around line A. Some sort of bullish impulse could develop from here, but I don't believe in big bullish success with that clear weakness overhead.

On the first days of December, #BTCUSD found some balance between buyers and sellers. Price did found a temporary calm between 7450 and 7250 (bold black lines).

But the market needs to make losers. That is why we got 2 fake moves.
1/ Probably all the bears who opened shorts on this red bar, were stopped out by…
2/ …this green wide pump. The buyers who opened longs on this up-bar, were stopped out on…
3/ …this wide red bar. Trading is a cruel business.

When the market made enough losers from traders (the good job is done), it wanted to rest for a while. That is why we can see another entering into the same balance between 7450 and 7250.

The main outlook is neutral 50:50.
4/ But this bar with long wide-tail and volume-spike (SLKT-style), it makes me a bit more bearish 45:55.

Have a great weekend.

real sell.buy zones are not widespread.
are not general.
occurs once or twice a week.
we need to focus on these levels.
be green.

Subscriber asked me to analyze XTZUSD. Share it with you

We have a nice triangle on the background. Previous price action reveals levels of support (1.15) and resistance (1.4). Fake Penetrations (1 and 2) confirm the validity of these levels.

3/ The First Bullish Impulse. Here we got a Demand-Bar breakout. Could it be expected or predicted? Not many odds from point of view. Market was balanced and non-active before breakout, and the better tactic then is to find fast-time frame opportunities to join upward-breakout.

4/ The minor balancing triangle around 1.4-1.45 (demand temporary meet supply in quantity and quality) provides such opportunities around its low border.

5/ The Second Bullish Impulse. Bullish Breakout above the minor triangle.

6/ The third Bullish Impulse.

After three bullish impulses in a row, up-wave power should exhaust now. Add the Completed Target Level 1.65. So, we have to expect a pullback in 1-3 nearest days.

Bulls can resume their pace, of course. In this case, they need some minor Shakeout (Artificial Panic, SLKT) in order to knock-out existing longs and 1.65 clear resistance.

Thank you Oleg for a new dimension into chart analysis; this is something profoundly useful in becoming a better chart reader.
It is said that one cannot measure volume in Forex and yet you seem to have nailed it with your indicator? Which one are you using, please?
I use MT4 charts but could use MT5 if needed.
Looking forward to hearing from you.
Continued success.
Hercs.

Oleg,
Would you mind doing an analysis on the US30_H1 as per my chart attached, plse?
Thanking you most sincerely,
Hercs.

Attached Image (click to enlarge)

I found a volume indicator that might be a better option:

Built-in volume in MT4 shows the tick-volume, not real. Although you can use built-in tick-volume indicator powered by your broker because tick-volumes still represent the ACTIVITY of trading. However, the real volumes from official exchanges work better.

On your H1 chart, it was two SBs on background. Then price moved back up to test the level of breakdown. On the faster TF like 3m-5m, you can find EVRT. Not very obvious on your 1H chart picture.

AUDUSD H4 overview

1/ Note, on this down wave, sellers were in Profits. New entered sellers also gained profits. All indicators pointed in selling. This is a perfect situation for a professional minority to build a absorb a flow of Sell-orders and Build Big Longs.
2/ Bad for selling crows (as often) price moved in an unfavorable direction…
3/ … and settled well above 0.68 (red line).

Now let’s think. If the market is strong and it is going to step upwards to new high ground – what it wants to do before? Right. It wants to knock out buyers in order to let them no make profits from the further rally. That is why we got …

4/ ...Knocking the Stop-Loss Clusters (Blue lines) and knock out buyers from the market.
5/ Buyers are knocked out enough.
6/The market is ready to go up higher.

What is next? IMO, this market has more bullish intentions than bearish in mid-term.

Thanking you most sincerely.
Hercs.

This is an example of the Panic Selling on the Cluster Chart.

Panic Selling is a Sign of Hidden strength. Study the chart from the previous post. And look at what happened next.

1/ SLKT above 7300. Price penetrated but quickly reversed down back below 7300. This is not a kind of bullish behavior.

As a result, we got examples of ND bars/wave: 2 + 3.

4/ S-wave confirmed a lack of buyers above 7250
5/ Another instance of deficit of demand. Low volume caused by the insufficiency of buying power.
6/ Supply bar confirms ND on the previous bar
7/ One more SB.

Price is approaching 7100

What is next?
Well, we have facts of bearish domination around 7200. That is why the most expectable scenario is bearish. Resting and Attacking 7100.

To understand what the chart depicts, first, you should a good knowledge regarding how many types of charts are there, for example, Line Chart,Bar Chart, Candlestick Chart. Once you know how many types of charts are there, then you need to know the different approaches to studying a graph. For example, Graphical Analysis, Incorporating technical analysis tools into your charts.

Then it would be easier for you to understand how charts help you in trading and how they play an important role for traders.

On the previous post for my followers I wrote:

The most rational expectation - a continuation of the persistence of bulls and more attack on the 7020 support level (caused by major 7k figure).



Unfortunately, it was my mistake. I put the wrong word “bulls” instead of “bears”. I hope, you have understood my thoughts correctly, as bulls can not attack support levels. What new did we have to get on the chart?

1/ SLKT above previous minor highs and above round number. This diversion designed to: a) kill sellers b) trap buyers. It is a sign of upcoming decline
2/ SB (confirmation)
3/ ND (more confirmation)

Then we got the Breakdown. The successful attack of bears on the 7020 support level (caused by major 7k figure). It was a very heavy dump. 7k should act as the resistance now.

where do you get your forex experience?