In a previous post of mine I described the interesting and rarely seen situation>>> when there is a fourth attempt to break above a strong resistance level (on the weekly and monthly time frame), which proved in vain, at least for now.
On the daily time frame there is a high that technical analysis textbooks call “Eva” – i.e. the the high has formed over the course of several (in this case four) days, and after the last unsuccessful attempt to break above the resistance traders and investors started selling.
The situation with this pair has become even more interesting – such a high could become a double top, if the pair attempts once more to break above the historical resistance level. In the alternate scenario those attempts to break above the resistance will end and the trend will reverse.
Meanwhile let us take a look at the shorter time frames, which are usually what most traders focus on – for example the one-hour time frame. It’s quite noticeable that the pair is moving quite smoothly, the candlesticks have short shadows and long bodies and form long movements in one direction, which are great for intraday trading. That means that when the pair chooses a direction in the long-term intraday traders will have excellent opportunities to find new entry points to open new positions and profit.
In my next post I will focus on the different possible entry points which can be seen, as well as the outcomes of the trades and I will explain why such movements are very good for traders. Although these examples occurred in the past I think that from a theoretical point of view they can be very useful for many traders.
Very good post.
ReplyDeleteGood post!
ReplyDeleteInformative article, thank you.
ReplyDeleteThat's a very interesting article, thanks!
ReplyDeleteGreat post.
ReplyDeleteTaking note of key levels to keep track and follow up.
ReplyDeleteThank you for the analysis very helpful.
ReplyDeleteExcellent Analysis! Thanks.
ReplyDeleteExcellent analysis!
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