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Technical Analysis (Volume Spread Analysis) - EURUSD [Short

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Technical Analysis (Volume Spread Analysis) - EURUSD [Short

Postby MetaNeural EA » Tue Feb 26, 2013 6:58 pm

The highlighted bars are indications of major weakness and they come at a level established for a couple months to be a strong resistance level. I would suspect that the market will rebound up temporarily, at least up to 1.3170 before any further down move is possible.

Remember this is short term, this downtrend will not be absorbed by the current stalling action but it will definitely delay it.

Notice the high volume on the highlighted bar closest to the right-hand side of the screen - this coupled with the close being almost in the middle of the bar means there was a significant amount of hidden buying. The 'smart money' (large institutional players) in the market hide there activity with hidden buying and selling.

DO NOT sell before a small move up.


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Re: Technical Analysis (Volume Spread Analysis) - EURUSD [Sh

Postby MetaNeural EA » Tue Feb 26, 2013 7:03 pm

The resistance created in the highlighted area from January must be broken before any further downmove can resume and the current bar configuration, namely the large volume and hidden buying in the bars depicted above, tells us there are not enough sellers present to push below the current level. BUY - temporarily.



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Re: Technical Analysis (Volume Spread Analysis) - EURUSD [Sh

Postby MetaNeural EA » Wed Feb 27, 2013 4:49 pm

Temporary upmove in EURUSD has commenced as stated and it is clear from the hidden selling in the high volume bars of this small retracement that it will be short lived [Note the highlighted bars which show significantly high volume but close well off their highs]. I expect we will see price dramatically repelled if it gets up to the 1.3170 area (next area of major selling pressure) as was stated yesterday.

I pocketed over 50 pips in this upmove but it is now time to close your buy trades and wait for a solid sell configuration - wait for sellers to take over in force before entering a trade. Basically this is now a waiting game, we must wait until all the weak buying has completely dried up to minimize drawdown before entering a sell.

Next, look for a failure to the upside and sellers to take over.

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If we see sellers take over at the current level we can expect a break of the previous support and a drop much older levels, but I suspect we'll see the buyers taken out at higher levels before a drop - maybe 30-40 pips higher - but too risky at this juncture to profit from buys given all the hidden selling.
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Re: Technical Analysis (Volume Spread Analysis) - EURUSD [Sh

Postby MetaNeural EA » Fri Mar 01, 2013 12:35 am

Thanks. Looks like selling has dried up and it will not have the supply to power through the major resistance of 1.3030 tonight judging from the appearance of 3 NO SUPPLY bars in the last few hours. When you have tiny bars like that with almost no volume closing near their lows it is called NO SUPPLY and it means exactly what it says, no effort to go lower is present because the smart money are not interested at the moment.

This doesn't mean price will go up, could stay stagnant for a while and go further down later on when supply is gathered but if you like to scalp there is a great opportunity to buy right now at 1.3063 (7:23 PM EST). Should give you at least 20 pips.

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Re: Technical Analysis (Volume Spread Analysis) - EURUSD [Sh

Postby MetaNeural EA » Fri Mar 01, 2013 6:03 am

And 20 pips it is

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Re: Technical Analysis (Volume Spread Analysis) - EURUSD [Sh

Postby MetaNeural EA » Fri Mar 01, 2013 12:24 pm

and off the cliff we go - FIRE AT WILL GUYS!

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