{quote} hello emmanuel, see how the market will consolidate seen after but rarely before ... On what element do you determine consolidation? {image}
Hi thomi,
It is not possible to see ahead in time when the market will consolidate. The market moves in waves, just like we see trends in different timeframes, we also see
price corrections, price pullbacks, etc. in different timeframes too. There are different technical analysis methods which help identify potential support and resistance where market can pause after a strong trending move. When we observe closely the various market session opening and closing, market tends to pause or pullback as buyers/sellers exit their positions. Therefore when we trade intraday using H1 timeframe for example, we need to pay attention to certain market session closing like Tokyo close and London close hours.
For my 4H swing trading, I stick to using historical price swing levels to look at the price action when it approaches the historical swing levels. Usually where there is confluence of other support and reistance like pivots, fibo levels and RN, the confleuence regions can be potential areas where market will pause.
Using your EURUSD chart as example, I did a quick post mortem and highlighting where those historical price swing levels are and look at the recent price action. See attached pdf.
Hope this help explain what I do for my 4H swing trading.
regards,
EMMANUEL
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
