CADJPY: Bullish continuation
Totally missed this Bullish trade from the start but fret not, I see evidence of Bullish continuation.
The first sign of trouble for the Bears came in late NY session Wed. After 3 Bearish H4 bar, we see a pin bar. Why is this significant? First of all, the pin bar is right where a previous structure low(9th Mar) is. Most importantly, the pin bar registered the highest volume seen in the down move. If this bar is Bearish volume, why didn't it close lower? Perhaps, its a sign of Bulls in the background? Ideally, the bar should close in the upper half of the range, But when u drop down to H1, you can clearly see a Bullish impulse follow by a low volume Bearish bar. The Bullish impulse indicates Bullish interest while the low volume Bearish bar is a test bar that says there is no supply at a region where supply use to be. True enough, price pull back the next day to the H1 Bullish impulse and rally from there.
So where is the evidence of Bullish continuation? This happens on Fri. After a Bullish impulse, price consolidated at a previous structure high. If there is Bearish pressure, should price be consolidating there? The next evidence came in the consolidation zone. Notice the last H4 bar, it is of a high volume. Though it is a Bearish bar, price didn't close in the lower range. If it is Bearish volume, shouldn't the price close much lower? I see this bar as a sign of strength.
With all these evidences, I surmised that price will go higher next week.
DISCLAIMER:
Any opinions, analyses discussed in this presentation are just my personal opinion and do not constitute investment advice.
I do not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
PRICE ACTION only tell half the story. The other key half is VOLUME. For VOLUME drive price.
The first sign of trouble for the Bears came in late NY session Wed. After 3 Bearish H4 bar, we see a pin bar. Why is this significant? First of all, the pin bar is right where a previous structure low(9th Mar) is. Most importantly, the pin bar registered the highest volume seen in the down move. If this bar is Bearish volume, why didn't it close lower? Perhaps, its a sign of Bulls in the background? Ideally, the bar should close in the upper half of the range, But when u drop down to H1, you can clearly see a Bullish impulse follow by a low volume Bearish bar. The Bullish impulse indicates Bullish interest while the low volume Bearish bar is a test bar that says there is no supply at a region where supply use to be. True enough, price pull back the next day to the H1 Bullish impulse and rally from there.
So where is the evidence of Bullish continuation? This happens on Fri. After a Bullish impulse, price consolidated at a previous structure high. If there is Bearish pressure, should price be consolidating there? The next evidence came in the consolidation zone. Notice the last H4 bar, it is of a high volume. Though it is a Bearish bar, price didn't close in the lower range. If it is Bearish volume, shouldn't the price close much lower? I see this bar as a sign of strength.
With all these evidences, I surmised that price will go higher next week.
DISCLAIMER:
Any opinions, analyses discussed in this presentation are just my personal opinion and do not constitute investment advice.
I do not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
PRICE ACTION only tell half the story. The other key half is VOLUME. For VOLUME drive price.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.