Bearish Pressure Zone (3 Candles In Row With Upper Wicks)
Chart example is of a Bearish Pressure Zone:
3 consecutive price bars with upper wicks (VERY strong/either bearish or bullish setups)
Note: Make a zone from top of highest wick to top of highest close with one of the consecutive wicks, this is what you use as you risk or initial stop loss.
Price Action is not about price, but more importantly about decisions other traders/big banks are making related to price action.
Half of Forex trading is psychology (see Mark Douglas- You tube or google him)- might even read and/or buy his trading books.
Wick Psychology: When we have three consecutive bars with overlapping lower or upper shadows, the traders undergo the same emotional cycle three times, all within a compact price range. But these wick bars can be in close area of each other, they do not have to be three in a row, see bullish pressure zone on the attach chart for an example.
3 consecutive price bars with upper wicks (VERY strong/either bearish or bullish setups)
Note: Make a zone from top of highest wick to top of highest close with one of the consecutive wicks, this is what you use as you risk or initial stop loss.
Price Action is not about price, but more importantly about decisions other traders/big banks are making related to price action.
Half of Forex trading is psychology (see Mark Douglas- You tube or google him)- might even read and/or buy his trading books.
Wick Psychology: When we have three consecutive bars with overlapping lower or upper shadows, the traders undergo the same emotional cycle three times, all within a compact price range. But these wick bars can be in close area of each other, they do not have to be three in a row, see bullish pressure zone on the attach chart for an example.