Trading in consolidation may not bring you about a lot of volatility and perhaps lead you to believe nothing is to trade off out of it. But if you look into the smaller time frame, you can still see the imbalance causing the price pushing and pulling against each other depending the traders who is out there making the supply and demand continuously imbalance.
I think this tend to occur prior the NFP. Knowing that the price had visited the demand and consolidate perhaps awaiting for a breakout prior the NFP this week. There is a possibility price might go up towards the supply on the daily chart. And perhaps price will proceed back bearish in March on the start of the QE announce by draghi.
Here is an overview on EURUSD is doing.
I was looking into my hourly chart and it has been visiting the demand more than twice and yet proves to be bouncing back up. Indicating the demand there is building up. I know that they will believe the trend is changing for the time being.
See below my short term trade.
It is base on the 30 min chart. What I notice is that the Demand ( fresh ) was formed prior London Open. Normally its After not before. IT could also be late asian bankers buying into the Euro ? These are just way of not knowing who the other side of the market.
As for me I am buying into who ever is still thinking of selling. I am sure it is who waits for a rally and sell them on every time the price rally. He is right but at the wrong time. I will ensure his stop out will reach so I can transfer his money to my account. I am taking this trade for a 1: 2 as usual. Risking 18 pip for a 36 pip reward.
BOOM! It’s mine.. I’m sorry sellers. Focus the larger time frame next time.
Did anyone got this trade ? Hope you did.
More Training Next time 🙂