EURUSD has now moved below yearly support line S1 (black horizontal line) and monthly support line S2 (blue horizontal line); note red circle. In addition, Fridays Daily candle is below next week's "Average True Value" line; see the green horizontal line marked as P on the chart. With Friday's candle below "Average True Value" indicates the sellers are in control of the market. With sellers in control of the market, I want to be a Seller. Further Friday's candle formed a small real body red, or bearish, candle indicating sellers were not committed to moving this market lower. The upper wick on Friday's candle indicated that some buyers came into the market but sellers were able to overpower the buyers and push prices back down close to where the market opened but didn't have the conviction to continue the sell-off. This indicates to me that sellers don't want to push the market lower and buyers are ready to push the market higher. As a result, I now expect price action to move the market upward towards either 'Weekly resistance R1' or 'Average True Value'. Once price bounces off one of these two areas and provides a new 'Short trade Set-up' the market will be in a position to enter a new 'Short trade'. I expect to see a new 'trade setup' either Tuesday or Wednesday.
Here are some important links. I created a folder on the Bookmark Bar and called it 'Reference' and added these links to it. I then renamed each link as Bearish Rejection Candles, Bullish Rejection Candles, Most Volatile Currency Pairs, and My Trading Plan for quick reference.
Here are some important links. I created a folder on the Bookmark Bar and called it 'Reference' and added these links to it. I then renamed each link as Bearish Rejection Candles, Bullish Rejection Candles, Most Volatile Currency Pairs, and My Trading Plan for quick reference.
