Hi, Readers
Its quite a while since I last post an article on the blog . Reason being the schedule and busy in trading . I would always love to help everyone here & share best of the knowledge and experience I've gained in this career of forex trading in last 10 years or so.
Today, I would like to update you all about compression in Forex Trading. Price Compress when there are orders left above the recent price and price pick orders when it left a level and retest to check the supply and demand left.
Usually, while doing there are stacked orders that left followed by strong move & when Price show signs or hints of looking for those orders, then price usually don't really rush away immediately to find those orders, rather it compressed to the zone, usually in Three drives or one can see three peaks in traditional Technical terms.
Following chart is of Usd/cad, in which price has shown signs of compressing towards the 1.3290-80 area, where we witness strong decline and now as price is approaching that level, we are bound to see a reaction to that zone. Price earlier had a decision made here and breach through various levels & now as we see strong reaction below when price leave levels and keep testing those zones after going through an area of concern.
I mark every crucial area with rectangles and trendlines, which show that there is hesitation and accumulation going on the moving market. This is totally a sign of reversal happening which opens up the opportunity to get nice profits as Only area I can see is the bottom of last breach which is around 1.3120 area.
I would love to extend that post to help you all with little more education on how we need to approach your trading activities but for the time being, that is all I can do & will make sure that I post atleast couple of post in a week to keep you all interested and guide you as much as I can with logical information about Forex & Commodity trading.
Its quite a while since I last post an article on the blog . Reason being the schedule and busy in trading . I would always love to help everyone here & share best of the knowledge and experience I've gained in this career of forex trading in last 10 years or so.
Today, I would like to update you all about compression in Forex Trading. Price Compress when there are orders left above the recent price and price pick orders when it left a level and retest to check the supply and demand left.
Usually, while doing there are stacked orders that left followed by strong move & when Price show signs or hints of looking for those orders, then price usually don't really rush away immediately to find those orders, rather it compressed to the zone, usually in Three drives or one can see three peaks in traditional Technical terms.
Following chart is of Usd/cad, in which price has shown signs of compressing towards the 1.3290-80 area, where we witness strong decline and now as price is approaching that level, we are bound to see a reaction to that zone. Price earlier had a decision made here and breach through various levels & now as we see strong reaction below when price leave levels and keep testing those zones after going through an area of concern.
I mark every crucial area with rectangles and trendlines, which show that there is hesitation and accumulation going on the moving market. This is totally a sign of reversal happening which opens up the opportunity to get nice profits as Only area I can see is the bottom of last breach which is around 1.3120 area.
I would love to extend that post to help you all with little more education on how we need to approach your trading activities but for the time being, that is all I can do & will make sure that I post atleast couple of post in a week to keep you all interested and guide you as much as I can with logical information about Forex & Commodity trading.
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