For the last couple of weeks price has been stuck between 0.7800 and 0.7700.
The purple box shows the area of consolidation. Since price has a tendency to move in patterns, price normally moves the same range in which it consolidated. So it moved about 120 pips inside the consolidation box so when price decides to breakout of the box it will move about 120 pips down or up. That is why I cloned the consolidation box and put one on top and one on the bottom in green to identify my TP. Within the boxes there are two Take profits (TPs), one at the psychological level and another at the bottom of the box.
I believe that price can go anywhere but I will only enter on three confluences:
EMA Cross
Break and retest off of the purple box
Candlestick formation
I hope this information has been helpful! Take care!
The purple box shows the area of consolidation. Since price has a tendency to move in patterns, price normally moves the same range in which it consolidated. So it moved about 120 pips inside the consolidation box so when price decides to breakout of the box it will move about 120 pips down or up. That is why I cloned the consolidation box and put one on top and one on the bottom in green to identify my TP. Within the boxes there are two Take profits (TPs), one at the psychological level and another at the bottom of the box.
I believe that price can go anywhere but I will only enter on three confluences:
EMA Cross
Break and retest off of the purple box
Candlestick formation
I hope this information has been helpful! Take care!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.