Technical Analysis (Volume Spread Analysis) - EURUSD [Short Term] - page 2
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Well I'd be looking at the daily to analyze longer term for next week which means I can't give a very detailed analysis but judging from the amazing amount of volume this week and the lack of result in price movement follwing the large trade upmove bar on monday I would think it will go sideways for the beginning of next week at least, perhaps the entire week. What happens after that sideways movement is anybody's guess.
With that in mind I would be looking for shorter term trades being very careful to avoid major areas of weakness, because I suspect they will be like force fields starting next week, repelling prices and creating a range trading opportunity.
You'll the the black line in the image below represents the resistance area EURUSD is at currently, it goes back a year and is respected by price everytime it gets near.
click image to see gif
What is your take for next week MetaNeural EA?
Great guess mate!
Am looking to by near last weeks low once the current channel is broken to the down side.
Obviously the market may rise from here and that is ok, I'll just have to wait for the next opportunity.
Cheers,
Pip
There very well might be a buy opportunity if price floats down to previous lows but the only way to be absolutely sure sellers won't take over at that level is to wait and watch what happens when price gets there. Do not trade in anticipation of something happening trade after the market shows you what IS happening.
For a buy I would need to see some major rejection of a further down move - think massive failure bar like last week with high volume because the selling would have to be absorbed and together with the public pressure to sell volume would be high.
I suspect we won't see any strong buy opportunities however, maybe a small bounce, but it would be too risky to take a buy at this level until something major happens I'd say. More likely is a sell off.
Notice that after last weeks rejection (our buy profits that we took) price has meandered down without much drama, know why? Because the smart money have done their work well, covered the buys and with trap up moves etc. and this is their profit taking mode, meaning price will simply drift down without much resistance and with medium to low volume - that's what I think might happen this week - still in a range of course, but gradually down so any buys would not be a good idea in my opinion (unless we see some major rejection accompanied by high volume).
I joined the party late, and got stopped out (+4.4 pips). Will see what the market gives us tomorrow.
Keep the good stuff coming
Cheers,
Pip
Hey there pip, we got our sideways market/squiggly lines lol. Next up is the market will make a decision, futher down or up, I don't see it going sideways much longer. I'm leaning towards up in the medium term (week).
It looks like there is almost no strength in eur/usd at the moment, the last hourly bar shows 'no demand' which is low spread and very low volume. I suspect we will see that for the next few hours before a rejection later tonight or tomorrow morning and another move down. I'm waiting for it to test the reversal area from earlier to day before selling (1.3042 - 1.3070), of course with good reason, I'll have to see more 'no demands', 'reversals', or 'up thrusts'.
Am not sure what to make of the market at moment. Higher time frames indicate a potential upward movement, but lower time frames don't tell me much.
But if i were to guess, I would suspect an up move later today or tomorrow then one more test the lows before going up again. I will play it as it happens.
Happy pip hunting.
Cheers,
Pip
So the imminent drop in EURUSD I spoke of in the last post happened beautifully and was stopped at a predictable level which was an area of previous strength. The upmove we're seeing now is not temporary like the last couple in the past week. It is clear that the reversal at today's bottom is an absorption of supply (yellow square).
What might not be so clear to those that haven't studied VSA is that the blue bar in the chart, the huge up bar from last hour, is a key indicator of absorption also. Look to the left of it, in the yellow oval, these are previous highs, the blue bar blows past this area gobbling up all the stops there on the way. This is a major indicator of strength and for the next week we'll see clear buy signals. There will be one tonight and tomorrow morning when price goes back to test those previous highs, I'll highlight it when it happens, buy buy buy.