Sunday, May 31, 2009
Sample PA setups
Attached is the 15M chart for GBPJPY which shows some beautiful PA setups, all within a few hrs...Such setups are present all the time on all pairs. This shows that you could easily make more than 100 pips just by trading 2-3 hrs on a single pair alone.Now lets start from the left.
Look at the price bar of the bar which has the largest volume (in red). Look how it finished close to the middle of the bar inspite of the large volume. If the huge volume was caused by buyers, why would the price finish near the middle ?? this shows that selling was there and that the end of the upmove is near....And we are proved right once again. So the price did move up to touch the psychological resistance at 151.5 and dropped heavily.... Another point to note. Any break in support will almost always be followed by a retrace back to the support to pick up any more buyers over there and also to get a good price for the big boys.
After this, look at the pin bar at the bottom with high volume....pin bar, high volume, a sure shot indication that we are changing direction, which we did...
Then we go up again and again we have a high volume bar which closes near the middle....and again, we go down as expected...shows u the power of PA... You can see such setups in almost all TFs, all times of the day in all pairs.
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