Thursday 12th July

by Liam 10:24 0 comments

I've a lot more hours at work with staff members away on holidays so it's more full time at the moment than it is part time. I'm lucky in that I have access to a computer or wifi on my phone so I can look at my charts with LogMeIn or Teamviewer whenever I want. I was working yesterday morning but it was pretty quiet so I got plenty of chart time in. All I can say is I was glad that I was in work. Pretty boring day that idled sideways for the most part. If you hadn't guessed, I didn't take any trades. 

EUR/USD 15min

One point I'd like to make is about the FOMC bar at A. I was guilty of this in the past, people are still guilty of it and many more people to come will be guilty of it as well. In the early days of learning VSA and for every newbie learning VSA there's a tendency to scream "ooohh, high volume on a down bar = strength, it's definitely strong, there's no two ways about!" Wrong. We must wait for some confirmation. Sure, the next bar is up and the one after that, but the volume is decreasing as we go. I've taken this a step further with the use of these fib zones and incorporated a rule into my trading. If price does not cross the 50% area then it is not strong/weak (depending on direction). It's a simple rule that has worked very well for me so far. This is a perfect example of it, we couldn't break the 50% area printing a few ND as we went and eventually crashed down and through the lows.

Now, all of this happened while I was asleep so I didn't get in on anything, but it's interesting to see nonetheless. We got a couple of zones at B and C which i've marked. The 50% of C seems to be holding price pretty well so far. There are also two interesting spikes in volume at D and E. It's always worth noting "out of the ordinary" spikes during the Asian session, these can often provide us with set ups.