W1 CLOSED WITH A STRONG W1 REVERSAL PATTERN (BEAR TRAP / FAKEY FORMATION)
LET ME EXPLAIN WHY THIS PATTERN IS STRONG. USUALLY WHEN THERE IS A INSIDE BAR ON THE D1 W1. TRADERS WOULD TRADE THE BREAK OF THE INSIDE BAR OR THE MOTHER BAR (CONSERVATIVE).
LAST WEEK THE PRICE WENT BELOW THE INSIDE BAR, CAUSING SELL TRADES TO TRIGGER, FOLLOWED BY CLOSING ABOVE THE INSIDE BAR.
THESE BEARS THAT WERE TRAPPED WILL WANT TO MINIMISE THEIR LOSS AND CLOSE SOMEWHERE NEAR 0.7700 (OR UNTIL THEY GIVE UP).
THUS, ACCORDING TO THIS LOGIC OF MINE. THERE WILL BE LARGE AMOUNT OF BUY ORDERS AT 0.7700 - 0.7750.
THIS PATTERN OCCURRED ON THE W1. THE HIGHER THE TIMEFRAME THE MORE RELIABLE.
TRADE CANCELLED IF NOT TRIGGERED WITH 2 WEEKS.
TRADE CANCELLED IF PRICE REACHED NEAR 0.7900.
LET ME EXPLAIN WHY THIS PATTERN IS STRONG. USUALLY WHEN THERE IS A INSIDE BAR ON THE D1 W1. TRADERS WOULD TRADE THE BREAK OF THE INSIDE BAR OR THE MOTHER BAR (CONSERVATIVE).
LAST WEEK THE PRICE WENT BELOW THE INSIDE BAR, CAUSING SELL TRADES TO TRIGGER, FOLLOWED BY CLOSING ABOVE THE INSIDE BAR.
THESE BEARS THAT WERE TRAPPED WILL WANT TO MINIMISE THEIR LOSS AND CLOSE SOMEWHERE NEAR 0.7700 (OR UNTIL THEY GIVE UP).
THUS, ACCORDING TO THIS LOGIC OF MINE. THERE WILL BE LARGE AMOUNT OF BUY ORDERS AT 0.7700 - 0.7750.
THIS PATTERN OCCURRED ON THE W1. THE HIGHER THE TIMEFRAME THE MORE RELIABLE.
TRADE CANCELLED IF NOT TRIGGERED WITH 2 WEEKS.
TRADE CANCELLED IF PRICE REACHED NEAR 0.7900.
