How to Trade EURUSD’s Hourly Downtrend
Dynamic trend: Turned down
Background: W1 – weak; D1 – weak
In point 1 there were a series of up-bars with a wide spread and high volume. This bullish maneuver is a «Potential Buying Climax». The two subsequent down bars confirmed the supply, therefore also confirming the weak congestion zone.
In point 2 there were a series of up-bars «No Demand». These have a special significance, because they were near the bar high of the point 1, and they were inside the weak congestion zone (the zone of previous selling). A good place for a short position.
In point 3 there were a series of up-bars ” No Demand ” with subsequent down-bar and “Up-Thrust” with low volume. Due to the weakness behind, one should look for a breakout of the congestion zone.
Wait for a rally to 1.11 to consider shorting, if there is either more supply or no-demand bars.