June 15, 2017 at 2:40 pm #24307
As part of our Weekly Watchlist on Monday, I brought up my AUDCHF chart and made a prediction based on what price was telling me.
Here is what we saw:
For three days in a row, price had pushed up against key resistance at 0.7300, and even though it pressed higher, it was unable to close above that key zone.
Would price reverse here, continuing down and joining its well established downtrend, or could this spot mark a major reversal.
In my watchlist, I said that I thought price was going to bust higher.
Here we are today:
I’m revisiting this pair for two reasons:
Price will very likely retest 0.7300 from above, and setup a nice buy trade for us.
There was a powerful price-action lesson. When price does not fall away from a level, but instead keeps on “hugging” it, it wants to break through. That’s how I knew what was most likely going to happen here.
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June 18, 2017 at 7:34 pm #24315
What made you to predict that the price will shoot higher compared to down ? This is always the challenge I have with my trades when it comes to support and resistence.
June 19, 2017 at 10:44 am #24320
I am primarily a price-action trader – so I try to let price guide me.
Have a look at the video here where I make the prediction: https://www.practicalpips.com/topic/june-2017/#post-24285
Essentially, when price is sticking to or hugging a level, it’s telling you it’s not going to reverse, but instead keep going. Very important keep the overall market in view for perspective though.
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