Context
Analysing from the perspective of both the buyer and the seller is of paramount importance. By analysing from both perspectives, you would be able to weigh both charts and come to a stronger conclusion instead of looking at it from neutral eyes. Below are examples of the USDCHF charts whose structures are drawn from the sentiment of a seller.
Weekly chart of USDCHF.
Hourly chart of USDCHF.
It can be seen here that there is a clear bear flag right after the market breaks out of the structure.
The difference between the above images and the current chart is that they are both analysed from two different perspectives. In the previous chart where the consensus was to sell, I drew structures where it was in favour of the seller, without considering the eyes of the buyer. However, after clearing all of my drawing tools, I redrew the structures and found that a position to sell would be of better odds.
However, in this scenario, the probability of the market moving to the downside still exists. I merely drew two different charts and compared them side by side, using structures. I made the call after comparing them with a peer.
General Consensus
Prepare to buy. Redraw your structures from time to time.
Steps To Take
Analysing from the perspective of both the buyer and the seller is of paramount importance. By analysing from both perspectives, you would be able to weigh both charts and come to a stronger conclusion instead of looking at it from neutral eyes. Below are examples of the USDCHF charts whose structures are drawn from the sentiment of a seller.
It can be seen here that there is a clear bear flag right after the market breaks out of the structure.
The difference between the above images and the current chart is that they are both analysed from two different perspectives. In the previous chart where the consensus was to sell, I drew structures where it was in favour of the seller, without considering the eyes of the buyer. However, after clearing all of my drawing tools, I redrew the structures and found that a position to sell would be of better odds.
However, in this scenario, the probability of the market moving to the downside still exists. I merely drew two different charts and compared them side by side, using structures. I made the call after comparing them with a peer.
General Consensus
Prepare to buy. Redraw your structures from time to time.
Steps To Take
- Prepare for a bull flag or signs of the market going down
- Buy