How would you know that price is going to be going higher from this consolidation?
- Price found buyers in the green box (twice)
- Price is above last week’s pivot (magenta)
- The last outside M was on the down side (butterfly)
- Price is above the upside reversal confirmation line (yellow)
- The triple M attempt on the upside was not an outside triplet (no 26-sample new high was printed)
- The 67-sample momentum is above 100 = bull pullback
- People that went short in the orange wick are under water – the 14-sample momentum is turned positive by breaking above that very candle
- Think of all the people trapped with their shorts below 1.13 with the 1-hour quick trip down to 1.1235
2 steps forward, 1 step back image
These people calling for 1.09 remind me of the email I got here in Slovakian from someone telling me that Eur would go to 1.25 and 1.32 in a rather hectic fashion last June.Momentum just reached neutral (100), price is sitting on the 9-day EMA after a slow motion bull pullback, the hourly just printed a Zero-Mastodon and you want to short, because everyone is always trading the last trade. The inside head would be broken on the way up.