Good evening guys…
Ok, now this is going back in time, however, there was a video that I had done during the weekend which was about why trading at the weekends was a difficult time. Some of the Older patreons will remember this video where i mentioned a pattern called the Evening Star pattern.
Now an evening star pattern is based on the works of Steve Nison’s Regarding Japanese Candlesticks. This book is purely about patterns within candlesticks.
Now you can see in the image above we have that same scenario.
Red candle followed by a massive stopping volume candle, then a developing Blue vector candle.
Notice how earlier today when they broke the 800 ema on the daily, price action was very aggressive. Ask yourself, Imagine how many traders would have gone short at this point in time…The break of the 800 EMA triggers the retail trader who has been waiting for confirmation of a lower move down. Then they returned the price back up.
I noticed this was happening and I still held my trade on the understanding that the price will potentially start making its way back up.
Notice how they have come straight back into the range. This is an important zone to hold for further upside potential.
Tomorrow Night will be very interesting to see how they play out in the Asian session.
Will check in with you guys around that time.