I went long and misinterpreted the area, I highlighted actually contained alot of no demand up-bars and I loss -18 pips on that trade.I actually went long in that area.
Most losses usually occur because traders are trying to pick the turns on sudden hunches or subconscious urges to trade. Look closely at the odds of catching a true turn at any time. The odds must surely be stacked against you. Most successful traders trade with the trend. However, picking the turns is not too difficult if you understand how the market works and understand what the volume means. Only professional money will cause a market to turn. Everybody can see this activity by looking at the volume.
You can spot many turns by looking at the simple logic of volume in relationship to price action. If for example, there is a high volume up-bar and the next bar is down, there must have been selling contained in
the first bar's volume for the next bar to be down – this is weakness. This piece of information now fits into the overall picture. However, the very best way to catch a turn is to wait for the specialist to play their
tricks on the market: The two best are known as 'the up-thrust', and 'the test' (both fully explained
elsewhere).
Okay the background first shows weakness, due to the bullish upmove. Second that red top is an upthrust bar, followed by a stopping volume bar. Which turns into a reverse upthrust however. The following bar is down which leads me to believe the reverse upthrust bar had more selling. Next couple of bars have narrow spread which means no interest for higher prices from smart money. Thus far the price has gone down and I'm out the trade.
