Eventhough the Weekly does not provide the details sometimes it is easily identified that we are going to change direction.
This is the Magic of Speed Index as I always say. Speed Index quantifies Effort vs. Result and Change in Behavior.
These two cases are both Effort vs. Result, both waves are Up waves but we have trend change (at the bottom and at the top).
Why is that?
At the bottom: Market makers are absorbing your sell orders and they are buying everything and that is why the price has not moved respectively. Therefore Effort vs. Result = Their 1st Push Up.
At the top: Market makers are absorbing your buy orders with sell orders and that is why the price has not moved again respectively. Therefore in this case Effort vs. Result = Hard to Move Up.
I guess after seen this on the weekly chart you can get your Bias and you can trade just this pair for a very long time.
Of course the same story repeats itself in all time frames.
...and how do we know which case is what (1st Push Up or Hard to Move Up) since both are Up waves???
Comments