Video Transcript:
Hey
everyone, it’s Dale here. People often ask me whether there is a way to tell
where the price will go after it has been in a consolidation or rotation for
some time—whether it will go upwards or downwards. In other words, after a
breakout, is there a way to predict whether the price will go up or down? Well,
actually, there is a way, and in this short video, which is a snippet from our
live trading room session, I’ll show you how you can tell. I hope you enjoy it,
so here we go.
If
you had to predict where the price will go from this rotation, what is more
likely? First thing, look at the strong uptrend. This is telling me that there
are strong buyers. Now, if you look just at the rotation, focus on signs of
aggressivity—let’s call them signs of aggressivity within the rotation. These
signs are strong rejections. We have this one, this one, and now this one.
Those are signs of aggressive buyers.
Let’s
now compare this with sellers. Are there any signs of strong sellers here? I
would say there is only this rejection, but afterwards, we had strong buyers,
strong buyers, and more strong buyers. Also, this looks like a sort of weak
high, which I think will get tested. If I print a line here at the high, you
can see that all the highs are almost at the same level, right? This is not a
very strong high. A strong high would be something like this, but reversed.
This is a weak high, and markets often look for liquidity above areas like
this. So, I wouldn’t be too surprised if, after this, the price went upward and
took out the liquidity above it.
If I
had to say what my bias is here, it would definitely be up because of those
signs of aggressive buyers, the signs of weak sellers, and also the strong
uptrend. Let’s see what happens here. We had this rotation for almost two
weeks, and the longer the rotation, the bigger the chance of the start of a new
trend.
After
a couple of hours, this is how the scenario played out. This is the weak high I
mentioned that would get tested, and as you can see, the price went upwards and
took out the liquidity sitting above this weak high. This is exactly what I
mentioned during the live trading room session. Right now, the price has gone
back into that rotation zone, and if I had to guess, it will probably stay here
and wait for some impulse. In my opinion, that impulse could come from the NFP
news on Friday.
This
is the Forex Factory webpage, and on Friday, you’ll see the NFP news here,
along with the unemployment rate. This week, this is definitely the strongest
news affecting the USD. I think if there’s going to be an impulse to move the
market outside of this rotation, it will come from the NFP news on Friday.
Let’s see how this plays out.
If
you’re interested in joining us in the Funded Trader Academy and trading live
with us every day, go to my website, Trader-Dale.com, and click the button
labeled “FTA”
(which stands for Funded Trader Academy). On this page, you can watch a video
where I explain everything about the academy in detail. If you’re interested,
you can also book a one-on-one call with us, and we’ll walk you through the
service to determine whether or not it’s right for you.
Thanks for watching the video. I’ll look forward to seeing you next time. Until then, happy trading!
