Understanding Impulsive And Corrective Price Action
Impulsive and Corrective Price Action If I had to follow only one simple rule of price action, it would be to understand impulsive and corrective price action, and if I could only trade one type of move, it would be impulsive moves hands down. They offer the most profit potential, communicate where the institutional players are buying and selling, whether they are buying or selling, and what...
Read MoreWeekly Forex Chart Outlook June 24th – 29th
EURUSD Looking back at the structure of the price action, the bounce off the yearly lows looks rather corrective in nature, even though there pair was extremely oversold. The selling was highly impulsive, while the buying (while having its moments), in the larger scheme of things is more corrective in nature. You can see this reflected in the angle of the price action behind the selling and...
Read MoreForex Price Action Setups – Bearish Engulfing Bar for Kiwi – June 21st
NZDUSD After forming an inverted pin bar on approach to .8000, the Kiwi followed with a large bearish engulfing bar giving a kiss off the round number, then selling off over 140pips for 8hrs straight. This single engulfing bar took out the last three days of gains, reminding us the downside still has far more teeth then the upside. Being incredibly oversold on the short term after the cliff dive...
Read MoreIchimoku Trading Signals – Chikou Crosses Price Line – June 20th
AUDUSD As we mentioned in our weekly forex market commentary, the key area to watch for the Aussie on the upside was the 1.0220/30 area and this held the upside of today’s wild ride of price action. In the process of the day’s modest gains, the Chikou span crossed the piercing line which is an additional bullish signal, along with the upward tenkan kijun cross 5 days ago and the...
Read MoreIchimoku Trading Signals – Tenkan Supports on Dips – June 19th
GBPJPY The beast (otherwise known as the GBPJPY pair) has gained 10 out of the last 12 days communicating the bounce off the lows has some decent buying behind it. What is interesting to me from an Ichimoku perspective is how 3 of the last 8 days the dips touched to the pip the daily tenkan line, finding support there and closing higher off each rejection. This tells me the pair is...
Read More