Price is everything

Hey friend

It would be more accurate to say .."and due to the high activity on several bars at this area .. we should watch for further confirmation of sellers"

The reason I say this is that you can see high volume and it may mean:

A) Supply is swamping demand, or vice versa
B) Supply is being absorbed by demand

Edit:

I decided to edit this post to include charts of what I mean

The first chart here, EU H1, shows absorption volume that is tested and proves itself to become H4 demand

The testing is more clear on M30 chart, which is next. Following some volatility, most likely from news, this area is tested which is when a bar pokes below the previous two and has volume lesser than both of those bars. This in combination with closing on the highs is what is known as a test.

I know this thread is Price is everything, but volume can help make it surgical (if you're cool with only a couple trades per week).

The third chart is M15 and shows supply being absorbed. You don't know that is has been absorbed during the first candle. Here you would be wary of supply swamping demand, but it becomes evident that demand has been absorbed when you see the testing. The testing is the second marked candle, and when seen in this context is a conservative entry

Edit #2:

I've attached a fourth chart from my last trade of the week. This was a very aggressive trade for me, as it was a long into intermediate term demand level. The reason I went for it was that I had been observing buyers on the dips on the way up as opposed to positions being unwound which may appear as selling on the rallies towards supply.

My reasoning for entering the trade was that the current momentum was up with buying on the dips on the H1. The most recent time buyers showed their hand was on the marked H1 bar, it is marked with a faint dashed vertical line on the bottom left chart.

On the right you can see M5 breaking out of a tiny range, marked in blue. The two marked bars are my entries. These are no supply bars as they are small down bars with low volume. Low volume is volume that's less than the previous two, just like with a test, except these don't have to close on the highs.

I don't want to confuse the thread with volume talk so let me know if it is appropriate.

Great thread ..

* 15 min TF demand might just hold up GU for a while ..Something to watch .

Update :

Now M30 demand ........

took gold ..lets see how this works ...

I see a bull flag in gold...

How we know its gonna turn into bull flag ? are we a magic man to know that ...I dont know how u guys say that ..can u elabrate ..



and Mr.Orbital or some big guys here , i cant go here and ther to ask questions . i can go if i have a chat marking and questioning . For example zoomie has shown a chart here i can ask him directly here than going to romancing the price thread and asking me . I cant expect him, to be here as well as there . We can ask questions were the chart has been posted . Hope you guys understand the things .....

Held ...

Calling it a nite ..

We don't know it will be a bull flag, just a high probability. In fact, I added to my position because another bull flag broke to upside. Look at hourly and 4 hour chart I posted.

fine buddy ...


I have just taken my ej order ..





Edit : stopped out breakeven ...Market went 2/3 down and came back ..

Pound Sterling breaking out. Will wait for pullback. Lots of action this morning.

Hopefully , there are more stacks of buy orders to stop the fall ..and I do see signs ........Other than that , If this zone breaks down , then I gotta close all my positions .....

My first attempt at rounded re-test. Played it off of inside bar, and I don't see any real bearish activity at this level. Comments appreciated

[Update: stopped out, re-entered. I just tightened stop as trade started to go my way. Think I will trade these levels trades in sim from now on....just a small position here...but a thousand paper cuts.... ]

I think the 1 hr TF was looking for a level and I think it found one , and more buy orders came in ..VSA traders would probably wait for a test but it looks strong ..

This is why forex is so dangerous ..lol


Some might want to sell at lower -level retail , but I think they might just get absorbed ..

Stop at breakeven

OOps !! Retail Sell orders were way more than I thought ..

Anyways , Gotta go enjoy some Fireworks ..

AU Demand....one of those trades that seems quite counter intuitive, as you are buying into strong downward momentum. Prob treat it as a scalp for 10 ish pips.


edit: Took my 10ish pips and bailed

Took the Same trades on EJ and GU albeit EJ was at the top spike, also took crude at the bearflag. Charts to follow once trades are done since im going to bed.

Sitting sell orders ...

How pleasure! Make money and watching porn at the same time. You did great!