Quick Lesson

How would you know that price is going to be going higher from this consolidation?

  1. Price found buyers in the green box (twice)
  2. Price is above last week’s pivot (magenta)
  3. The last outside M was on the down side (butterfly)
  4. Price is above the upside reversal confirmation line (yellow)
  5. The triple M attempt on the upside was not an outside triplet (no 26-sample new high was printed)
  6. The 67-sample momentum is above 100 = bull pullback
  7. People that went short in the orange wick are under water – the 14-sample momentum is turned positive by breaking above that very candle
  8. 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.