Binary & forex price action guideline part-2


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Why You Should Care About The 4 Market Stages

Markets do not move in a straight line up, down, or sideways. There is an alternation of movement that forms that basis of not only of an increase or decrease in price, but also of the overall market direction

This is the phase preceding a bull run that comes after a sell off where you can start to position before the move begins. This is the zone where informed traders start to accumulate positions and the market is virtually ignored by other traders. This accumulation must be done in a way as to not get on the radar of other traders. Bigger traders are attempting to build a position at low price and any not draw attention.

 More buyers could rapidly increase the price and this is not what you want to happen when attempting to gain a position. This phase is not easy to spot as it could simply be a consolidation before another leg down. You can increase your chance of labelling these price areas: ● Support holding with small probes below ● Strong upthrusts at resistance designed to entice longs, stop out the longs, and price drives lower = cheaper buy points ● Exhaustion thrusts in the same direction of the down move.

Plotting Price: Candlestick Overview

I won’t go into the many different candlestick types (do they even have an edge?) but want to make sure everyone understands the basic candlestick design because they will come into play. Variations of the basic design, at a few specific locations, can give valuable information. That will be covered later

Candlesticks will have a body that can vary in size depending on the opening and closing price values. Shadows show the highs and lows that occurred during the opening and closing prices. This size of the body and the presence or lack of shadows can give you insight into which side, bulls/bears, held the balance of power during the time period you selected for each candlestick

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