Advanced Price Action

Page 42

HOW TO IDENTIFY A CHANGE OF THE TREND ? The end of an uptrend is marked by the failure to create a higher high points .Look at the image below: What you need to understand is that In that instance , price is no longer intersting for buyers and buyers are taking their profits and now price now is in a strong longterm supply area interesting for sellers.

1.

In a first instance price is making higher highs and lowe highs, we say that BUY order flow volume (BOFV)> SELL order flow volume( OFV)

2.

However, The price does not create any other higher lows. Price fail to respect the structure to the upside. Some external force drastically changed the market behaviour . Price is potentially arround expensive areas= attractive for sellers: big supply levels

42


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.