After near support reversal described in previous USDJPY analysis, price continued to rise and background turned to strong. The following trade was opened after very strong signal detected by VSA indicator. Reversal is also confirming these signals.
- Background was strong.
- Several strong signals (Major Demand and Minor Demand) before trend changed. Reversal indicator also confirms market reversal in this place.
Let’s look closely at the Major Demand bar from the prospective of Volume Spread Analysis theory. As you see this is a wide spread down-bar with high volume. High volume represents high activity. But there has to be more buying than selling on this bar for the price to close in the middle. Next bars are also up. It means that professionals were absorbing selling from the herd by opening long positions in this place. Imbalance between supply and demand is in favor of demand, price continued to rise.
- Dynamic trend turned from red to green, entry in a down-bar when the price is near D.trend.
- Exit by reaching TP level
Total: + 30 Pips
On this chart you can see our new Reversals indicator which has high success rate of market reversals (you can see how accurately it detects price reversals on this chart). It can be used alone and together with VSA indicator. In last case you will have the greatest advantage in your trading and the best view of the market.