Good evening all…
I hope everyone has been doing well…Crypto has sure tested the patience of many and we see one little move in bitcoin and everyone is running to the charts.
Bitcoins move right now is very psychological…
Watch for volatility…Why?
The Uk/ euro zone will be on a bank holiday tomorrow…The only session that will be open is the US session.
The same criteria comes into play…
I will be focusing on Euro to help you understand how to “hunt” for potential zones.
Going into tomorrow nights update I will have a clearer view of where we are for the week with forex…
“Eurousd Daily”
Part of trading is about understanding human nature and the patterns that we can see…
I want to draw your attention to the current daily chart on euro…the red box is showing some interesting behavior…
Now compare it with the current structure of euro (refer to the chart “Euro Current Structure”
So why am I sharing this with you…Because our goal is to try and establish if the MM repeats itself. We know they do, its just working out when…Now the two structures I have mentioned…What do you see with them?
I’ll get you started…
The first image shows price coming from a downtrend
Then price holds above the 50 ema and the 200 ema…
The second image…exactly the same thing…
What is this suggesting to us?
Is the euro due to continue higher?
As it stands Euro is currently holding above the 4hr 50 ema…If you refer back to the Power of The 50 ema video, you will see that euro is holding very well above this zone.
We have a problem…Euro is still below 800 ema on the daily time frame. I urge that we mark this zone off on our charts and be aware of it.
“Euro 10 mInute Chart”
Quite frankly guys, most of you probably scalp, im not sure if alot of you swing trade euro,
But I want to draw your attention on how to navigate the “Intention” and “Structure” of the charts. Well In my opinion, how I hunt for potential zones to exploit.
The 10 minute chart shows you specific zones that price has encouraged traders to step in and returned back towards the zones they moved away from.
Look towards the red boxes…What do you see happening? Do you see a pattern or a pattern of “repetition”
You see the markets dont change from their business model…But they will do the same thing over and over again, just differently…There are many cars in different shapes and sizes…different speeds, power, colour, but they all drive the same…4 wheels…Markets are no different.
“Structure Of Intention”
Refer to the chart above labeled “Structure Of Intention”
Whilst the markets are closed…Go back and see if you can find the following two structures…
One will be familiar to you which is the V shape play, the other involves focusing on the vectors and where they appear in the chart.
It’s simple for me to say yeah euro is going up or down, but my goal is to get you to challenge what I assume because you “see it” differently…or you have picked a specific style of the hybrid and you have started to recognize “how price is developing” into a specific play.
Once you start going back and trying and find specific plays, I promise you, you will start to see them develop…
So here is a checklist of how to apply the concept of “Structures of Intention”
1) Do you have green vectors/red vectors that are yet to be recovered?
2) where are you in the move? Is it still moving higher/lower? ( is price above/within the upper or lower band of the 50 ema cloud?)
3) Have you seen a climatic move? Usually happens with a long green vector or a blue vector candle with little volume at what appears to be high…
4) Is price extended away from the 50 ema…Above or below?
Ultimately, when trying to find plays, time is critical…
Always pick the new york market as your spot to take trades. With bank holidays, be careful, lots of volatility with no volume, suggests, you take whatever profit you can and run with it.
Again, Hybrid system is all about practise…We know the moves can never be correctly predicted to the T, but you always get that situation where you take a trade, you get stopped out, and it goes in your favor in the end…That right there is Risk management…
Tomorrow I will be doing the breakdown for Forex and Indices as we have a bank holiday in the Uk and the markets will be down a pool of liquidity.
US Session may not bring much, but I will give you a heads-up tomorrow on what may be developing.
Use the time until the New york session tomorrow and try and find the structures above…
When working with Hindsight, your goal is to break everything down to the ridiculous…
Focus on every little move you see…” what did price do once it hit the 50ema”? in your mind, you will say, “I have noticed that after a big move up, once the price comes down to the 50, it starts to break down by the means of price trading n the lower band of the 50 before a red vector candle appears…” How many times have you seen that happen? – You will then see it happening in real-time and the only thing for you to do is take a trade and see how it plays out…
Human Nature never changes…
Will check in with you all tomorrow.
Mad Love
T
