The market looks bullish and strong. It showed it’s muscle yesterday when it broke above 0.79902 which is a price area defining a top of a range. Today the up trend continued to a new high 0.80423. The low 0.80170 which lead to the new high is accurate in defining an objective point of trend change. At 06:30am the market attempted to trigger trend change at prices below 0.80170 but failed leading to resumption of the trend. At 07:51am trend change was triggered successfully with a valid break out pullback entry minutes after the first break.
Using multiple timeframe analysis technique to analyze the first step is always to define higher timeframe support/resistance zones (these are areas where price action will move to/from). When this is done accurately like in the chart above, the next step is to define the current trend in the three minute trading time frame/ trading time frame. Currently I see a bearish trend- I classify it as a pullback bear trend because the overall market in 30 minute timeframe is bullish and strong. The third step is to identify strength and weakness.
In a trending market high probability trades are pullbacks and complex pullbacks. Traders who still would love to go long should wait for the trend to revert back to bullish before putting in some cash. At the moment the market is processing a complex pullback trade.
I’m always open for sharing Ideas, if you have something to ask, looking for the right broker for you, looking for the best books to read as a trader, I’m freely available for help. Happy trading.