We are are pushing up into new yearly highs. Price has nibbled through a few times from what it looks like from the three push pattern. It was good for a 150 pip drop. Sellers who took their profits are good. What about the sellers who anticipated a further drop and held on? They are in serious heat right now and trailing/break even stops have been hit. Now we have another pattern presenting a selloff even though we are witnessing previous sellers taking heat. These sellers will get let out. But not soon. Damage have to be done first. It could take days or weeks. Very rarely we screw up that bad to be right back into profit the next day or two. Also we still have sellers from end of day pop ups who haven't taken much heat. They guys will be targeted in the coming days. Then breakout buyers will be rewarded and taken sideways again.
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Comment:
Let me clarify a statement. When I am communicating my idea and I say what price will or will not do, that is what my thought process is as I'm looking at the chart and key levels. So I'm not making a 100 percent declaration that it will actually do what I think. I'm thinking in probabilities and when I see positions that I think are stuck or impatient, I remember times when it was me there hoping to get out in profit only for price to continue in the opposite direction.
Comment:
I will add another update here.It's only fair that I mention the logic behind my purple zone. I didn't include this in the original posting because I didn't think it was all that significant.And it may not be.This is where I think institutional support rest based on the signals my algo produced. I've noticed it in other patterns I posted after the fact that when I get a signal generated here, price later swiftly rejects it. lets say that if you sold at where it originated and your take profit was only a measly 15 pips. You are licking your chops to get back into profit as price nears only for it to instantly reverse. Statistically when this happens price doesn't return back for a while and when it does let those sellers out or put them into some profit, it's short lived before reversing right back up. If I'm a seller at this level, I'm praying to God to finally get me out of drawdown.