Looking at the H8 timeframe chart of EUR/USD, it can be inferred how nicely the price is lining up. By using the simple "accumulation, manipulation, distribution" strategy, we will attempt to forecast the future price movement of this pair.
With time and experience, it is relatively easy to spot familiar historical patterns. For example, the current price development strongly resembles what occurred a month ago. As it can be noticed from the graph, after ranging between the borders of the sideways-moving rectangular box plotted on the chart, the price managed to grab liquidity above the upper boundary of this box and then drop all the way down impulsively.
Observing the situation that we have at the moment, we may notice how the both cases are similar. After ranging for some period of time, the price is now attempting to break out of the rectangular box. Most likely, these moves will result in failing to break the upper boundary of the box and leaving wick candles to take out early entrants.
After closely monitoring the situation around the local zone, we will expect for the distribution phase to kick in, and hence, look for short positions.
With time and experience, it is relatively easy to spot familiar historical patterns. For example, the current price development strongly resembles what occurred a month ago. As it can be noticed from the graph, after ranging between the borders of the sideways-moving rectangular box plotted on the chart, the price managed to grab liquidity above the upper boundary of this box and then drop all the way down impulsively.
Observing the situation that we have at the moment, we may notice how the both cases are similar. After ranging for some period of time, the price is now attempting to break out of the rectangular box. Most likely, these moves will result in failing to break the upper boundary of the box and leaving wick candles to take out early entrants.
After closely monitoring the situation around the local zone, we will expect for the distribution phase to kick in, and hence, look for short positions.
