SMC 2 trades 7.5 RR and 3.75 RR1 trade buy : I was looking for an order block on the 1 hour timeframe, I found a buy position, I waited for choch or bos to do it, then I entered the trade, it happened as expected, then I waited for an order block in the demand itself on the 1 minute timeframe as seen in the picture.
2 trade sell: In basically the same principle, I found an order block on a 1-hour timeframe, I waited for bos or choch to do it, when the price returned to the demand, I looked for an order block on a 1-minute timeframe and entered the trade.
Eurusd-3
Reversal Pattern - Three inside UpThe three inside up pattern is a bullish reversal pattern composed of a large down candle, a smaller up candle contained within the
prior candle, and then another up candle that closes above the close of the second candle.
These patterns are short-term in nature, and may not always result in a significant or even minor trend change.
Consider using these patterns within the context of an overall trend. For example, use the three inside up during a pullback in an overall uptrend.
REASON -
The downtrend continues on the first candle with a large sell-off posting new lows. This discourages buyers, while sellers grow confident.
The second candle opens within the prior candle's trading range. Rather than following through to the downside, it closes higher than the prior close and the current open. This price action raises a red flag, which some short-term short sellers may use an opportunity to exit.
The third candle completes a bullish reversal, trapping remaining short-sellers and attracting those who are interested in establishing a long position.
Price-Volume DivergenceMy take on price and volume divergence. Ideally, the price should move higher with an increase in volume, which shows that more buyers are pushing the price higher and this is a perfect scenario for the price to continuously rise higher. But, when the price continues moving higher while volume is drying, it shows that buyers aren't interested to push the prices higher. This scenario makes it easier for sellers to step in and increase the supply to drag the prices lower. Such analysis should be supported by price analysis to improve the probability. Also, the news would be a great catalyst. Currently, EURUSD has rallied continuously for quite long and a correction might take place. This post is for educational purposes. If you have any query, comment below and I will respond to it. Also, if you liked my analysis then simply click the like button
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