This pattern is so important to understanding how institutions accumulate and take profits in this market.
This pattern isn't a completely unique framework to EURUSD, but it's part of this market's DNA.
Finding these patterns requires linear regression (which works best with high resolution data; lower time frames), to extrapolate a central channel which will act as support and resistance as price dances around it during the accumulation phase of the market. These patterns can appear as week long ranges or just a few hours for a pull back.
Either way, these patterns are a crucial tool to staying on the right side of the market during breakouts. Taking a counter intuitive approach to the market is the only way to profit long term. When price is below the channel, I'm looking for long set ups, and vice versa for short setups.
Right now, institutions are taking profit from Tuesday's massive drop, while also accumulating inventory to sell to buyers to fuel the next big short. The regression confirms this activity, because you can clearly see price creeping up. I'm anticipating that price will break above the key resistance level (key framework; kf) and institutions will then short retail traders' long positions and drive price back down to new lows where this cycle will start yet again.
This pattern confirms institutional presence in the market. When you don't see it you're in a trap, and you should stay out of the market until it reappears.
That's EURUSD in a nutshell.
Best market there is, hands down!
This pattern isn't a completely unique framework to EURUSD, but it's part of this market's DNA.
Finding these patterns requires linear regression (which works best with high resolution data; lower time frames), to extrapolate a central channel which will act as support and resistance as price dances around it during the accumulation phase of the market. These patterns can appear as week long ranges or just a few hours for a pull back.
Either way, these patterns are a crucial tool to staying on the right side of the market during breakouts. Taking a counter intuitive approach to the market is the only way to profit long term. When price is below the channel, I'm looking for long set ups, and vice versa for short setups.
Right now, institutions are taking profit from Tuesday's massive drop, while also accumulating inventory to sell to buyers to fuel the next big short. The regression confirms this activity, because you can clearly see price creeping up. I'm anticipating that price will break above the key resistance level (key framework; kf) and institutions will then short retail traders' long positions and drive price back down to new lows where this cycle will start yet again.
This pattern confirms institutional presence in the market. When you don't see it you're in a trap, and you should stay out of the market until it reappears.
That's EURUSD in a nutshell.
Best market there is, hands down!
