Why did the price stopped dropping and reversed?

Panagiotis Diamantopoulos

Jan 11, 20241 min read

Sometime you wonder why did the price stop dropping and reversed when there is no significant level

It's No Fib - price stopped before significant Fib

2. EMA 50 - Price already below 50 EMA

3. There is significant previous support on the left

What is it then, why did we reverse? Well you forgot to check on most important indicator that smart money uses.

Touched AVWAP twice - AVWAP reacted as support and buying level!!!

More about AVWAP https://www.tradethevolumewaves.com/anchoredvwap

Enjoy!

2 Comments

Samit Roy

Jan 11, 2024

Thank you Takis...I am going to make a determined effort to learn about this system....any further thoughts on GBP AUD...I took a small trade but right now I am in a draw down...thanks again

Panagiotis Diamantopoulos

Jan 11, 2024

Replying to

Lost trade Samit -All the signs were for Short but failed. And like Mark Douglas says every trade is unique no matter how it looks the same with another one. If you followed the rules your stop should have been hit if not big mistake and drawdown increased waiting for the price to drop. I think the lesson we should have is discipline and money management.