GBPAUD Momentum strategy that solves 80% of your problems
Market phases - Price Action
The market can only go in three directions:
1. up,
2.down,
3. sideways.
With high / low defined, we can use several charts to identify these market phases and start a simple search for our Swing Highs and Swing
Lows.
In short:
• the market rises when price makes higher highs and higher lows.
• the market goes down when the price makes lower highs and lower lows,
• The market goes sideways when price does not make higher highs and higher lows or lower highs and lower lows.
It may sound childishly simple, almost like stating something obvious, but
you will be amazed how often people forget these simple facts. One
the most important question is: "Where is the market going?"
sequence:
The change of direction is confirmed when
the price is rising above recent highs
(as seen in the chart above).
In other words, it is a reversal
1-2-3 - you go long (buy, eat) after
correction at the level of the blue line.(above/below average price)
The market can only go in three directions:
1. up,
2.down,
3. sideways.
With high / low defined, we can use several charts to identify these market phases and start a simple search for our Swing Highs and Swing
Lows.
In short:
• the market rises when price makes higher highs and higher lows.
• the market goes down when the price makes lower highs and lower lows,
• The market goes sideways when price does not make higher highs and higher lows or lower highs and lower lows.
It may sound childishly simple, almost like stating something obvious, but
you will be amazed how often people forget these simple facts. One
the most important question is: "Where is the market going?"
sequence:
The change of direction is confirmed when
the price is rising above recent highs
(as seen in the chart above).
In other words, it is a reversal
1-2-3 - you go long (buy, eat) after
correction at the level of the blue line.(above/below average price)
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