EURUSD: Markdown

Dynamic trend: Turned up
Background: W1 – very weak; D1 – weak
Phase: Markdown
Support: 1.055
Resistance: 1.066





Point 1: There was a potential “Selling Climax”, with a very high volume and a wide range. The subsequent bar was an up-bar, which indicated buying pressure.

Point 2: Represents a “test” with low volume and a narrow range relative to point 1. The following up-bar confirmed the success of this maneuver. Low volume when breaking out the latest low, indicates no selling pressure

Point 3: There was a “Shakeout” with a normal volume and a wide range.

Conclusions: The recent action is bullish, and indicates market strength. However, we should wait for the confirmation of the 1.066 level”


Suggested Strategies

Strategy 1: Consider selling, if:

  • Price pulls back to the resistance level 1.066 and
  • «No Demand» appears (up-bar with a narrow range and a low volume) and
  • Price reverses down.

Strategy 2: Consider selling if:

  • Price breaks down the support level 1.055 and
  • «No Demand» appears.

Strategy 3: Consider buying if:

  • Price breaks out the resistance level 1.066 and
  • «No Supply» appears (down-bar with a narrow range and a low volume).



You may search for «No Demand» and «No Supply» signals in the lower TF.


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