In Price Action Trading Strategy

German IFO data comes in much stronger than expected at 109.3 vs expected 107.6. Euro's immediate reaction pulled it higher on the good news, quickly countered with some massive wallets looking to sell into the pullback. The first “gap” (heavy-racing activity with zero retrace) is open at around 1.3343 down to 1.3338, and would stabilize the pair intraday. The more severe/undesired “gap” was just filled into 1.3324.

Short term, the first gap / objective is completed…..the higher will remain questionable and we'll better gauge as the day unfolds.

Euro plopped into the 1.3286 range to retrace, our first support level visible on the chart posted earlier today.
Sellers have been lining up all morning, dumping risk ahead of the U.S. break.

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Showing 3 comments
  • Call me Brian
    Reply

    There chart if full of gaps since you're using a HLC chart. For the interest of readers you could do well to use OHLC charts. Pretty please.

  • nobrainertrades
    Reply

    Hi there, I understand how you might have interpreted the gaps this way, though it is not quite what I was referring to. I will do my best to post a deeper explanation in the future, but long story short it isn't literal gaps in opens or closes but rather racing activity with little or no retrace. Price commonly uses the beginning of these areas as intraday targets when it occurs, even in the context of heavy intraday trends. Appreciate the comment though always good to know how these words might be interpreted.

  • Call me Brian
    Reply

    Thanks for responding to my comment. The gaps aside, I still have one more suggestion and that is to have the timeframe info on the chart. Most people save interesting charts on their PC for future reference and chart studies. It would be great if you could have the M1, M5, H4 etc. timestamp on the chart (as in MT4).
    Thanks.

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