POSSIBLE LONG TRADE AT GBP
15. Shake out: A wide spreade bar closing at the middle of the bar with high volume, this bar shake out all the weak holders after the down trend, and it is confirmed with the next up bar.
16. Supply coming in: A wide spread up bar closing near the lows with high volume, this bar mark where is the supply at this level. It is not confirmed because the next bar is a down bar, but, this bar got high-ultra high volume closing near the highs.
17. Test: Average spread up bar, closing at the highs, with low volume, with the next bar up. but, with low volume too, so, may you need a further SOS to confirm the demand present at this level, seen in the shake out at the background.
18. Bottom reversal o reversal in two bars: The first bar is a wide spread down bar closing at the lows with average volume followed by a up bar wide spread closing near the highs with high volume, this signal confirms the demand seen at the backgound in the shake out and the failed test.
19. Supply coming in: Up bar with ultra wide spread, closing at the middle of the bar, with ultra high volume, this bar is seen in a zone of distribution but is not confirmed yet.
You need to wait for a confirmation to open a postiion in this timeframe, for me, i will be in the 5M, 15M timeframe waiting for a no supply-test and a possible long to the 1.33817 level.
If i see a confirmaiton of the supply present at the 4H timeframe, i will wait to open a short position.
This methodology is called VSA. Im not a expert, so dont take my analysis to base of a trade.
16. Supply coming in: A wide spread up bar closing near the lows with high volume, this bar mark where is the supply at this level. It is not confirmed because the next bar is a down bar, but, this bar got high-ultra high volume closing near the highs.
17. Test: Average spread up bar, closing at the highs, with low volume, with the next bar up. but, with low volume too, so, may you need a further SOS to confirm the demand present at this level, seen in the shake out at the background.
18. Bottom reversal o reversal in two bars: The first bar is a wide spread down bar closing at the lows with average volume followed by a up bar wide spread closing near the highs with high volume, this signal confirms the demand seen at the backgound in the shake out and the failed test.
19. Supply coming in: Up bar with ultra wide spread, closing at the middle of the bar, with ultra high volume, this bar is seen in a zone of distribution but is not confirmed yet.
You need to wait for a confirmation to open a postiion in this timeframe, for me, i will be in the 5M, 15M timeframe waiting for a no supply-test and a possible long to the 1.33817 level.
If i see a confirmaiton of the supply present at the 4H timeframe, i will wait to open a short position.
This methodology is called VSA. Im not a expert, so dont take my analysis to base of a trade.
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