Dynamic trend: Turned up
Background: W1 – very weak; D1 – weak
Phase: Markdown
Support: 1.055
Resistance: 1.066
Point 1: There was a potential “Selling Climax”, with a very high volume and a wide range. The subsequent bar was an up-bar, which indicated buying pressure.
Point 2: Represents a “test” with low volume and a narrow range relative to point 1. The following up-bar confirmed the success of this maneuver. Low volume when breaking out the latest low, indicates no selling pressure
Point 3: There was a “Shakeout” with a normal volume and a wide range.
Conclusions: The recent action is bullish, and indicates market strength. However, we should wait for the confirmation of the 1.066 level”
Suggested Strategies
Strategy 1: Consider selling, if:
- Price pulls back to the resistance level 1.066 and
- «No Demand» appears (up-bar with a narrow range and a low volume) and
- Price reverses down.
Strategy 2: Consider selling if:
- Price breaks down the support level 1.055 and
- «No Demand» appears.
Strategy 3: Consider buying if:
- Price breaks out the resistance level 1.066 and
- «No Supply» appears (down-bar with a narrow range and a low volume).
Tip
You may search for «No Demand» and «No Supply» signals in the lower TF.