This is the third part of the US Dollar looking at price action. My friend told me that there are so many moving parts in price action it makes near impossible for retailers to win - I believe this. So what are the moving parts. In the first two charts I looked at swings and zones and why price moves with them and placed rules on the swings. These series of 4 charts is looking at where momentum turns and the moving parts in it. I believe by placing rules on momentum that goes hand in hand with swings one can make a fair judgement where price will go. (1) follow the higher highs in this case till price is no longer making higher highs but lower highs (2) wait for price to break a stop - the stops represent the last low where we saw buyers or the last high where we saw sellers (3) look for the minor trend to be broken (4) do we have engulfers building above price, holding sell orders or vice versa engulfers building below price holding buy orders. Again snap shots of price action and the concepts within each one is so hard to cover in a chart or two.
@jangseohee, I agree with you it may not happen but the above chart was an illustration of how momentum turns that linked with my other two charts on swings - I was putting some rules on them.
It may not happen @kate25
Fed is known for party spoiling