11. Further on Volume Profile
Hi traders,
I hope you catch good profit from the drop yesterday when price broke the Support. There is no need to be emotional/nervous. Just trade with the facts.
Now we are all wondering what had happened and what is next.
As you can see, price is revisiting the POC and a corresponding strong Demand Zone. This is a normal occurrence which means that the market is not yet ready to move higher. I would believe that it is still waiting for the 4Q21 GDP to be released on 27 January 2022. By now, I hope you will begin to appreciate D&S as well as VP in your trading journey.
In the grand scheme of things, Buyers are still in control. They have demonstrated that they can easily push prices up higher. I would say that price would not have drop past the previous Support line without the 'approval' of the Buyers (this I did not foresee as I would not have thought Buyers would act as such). Buyers did gain some profit from the sale of their Euro and by letting price drop past support. This also shows that they are absolutely confident of being able to push price higher later.
Price will now continue to trade around the POC. Buyers need to re-accumulate Euro that was dumped previously. I would say that they would want to accumulate more. So lets continue to watch how volume reacts now. We will assess the accumulation pattern to determine if the above assessment is correct.
Happy trading.
P/S : As always, do not just believe what I say. Use your common sense.
I hope you catch good profit from the drop yesterday when price broke the Support. There is no need to be emotional/nervous. Just trade with the facts.
Now we are all wondering what had happened and what is next.
As you can see, price is revisiting the POC and a corresponding strong Demand Zone. This is a normal occurrence which means that the market is not yet ready to move higher. I would believe that it is still waiting for the 4Q21 GDP to be released on 27 January 2022. By now, I hope you will begin to appreciate D&S as well as VP in your trading journey.
In the grand scheme of things, Buyers are still in control. They have demonstrated that they can easily push prices up higher. I would say that price would not have drop past the previous Support line without the 'approval' of the Buyers (this I did not foresee as I would not have thought Buyers would act as such). Buyers did gain some profit from the sale of their Euro and by letting price drop past support. This also shows that they are absolutely confident of being able to push price higher later.
Price will now continue to trade around the POC. Buyers need to re-accumulate Euro that was dumped previously. I would say that they would want to accumulate more. So lets continue to watch how volume reacts now. We will assess the accumulation pattern to determine if the above assessment is correct.
Happy trading.
P/S : As always, do not just believe what I say. Use your common sense.
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