A Few more questions if I may pose to the group: Obviously I tend to focus on one pair (for now
) but hopefully the questions are broad enough to encompass all currency pairs or other instruments:
1. Right now we see the GBP/USD break out a bit to the downside. At least it broke out of the wedge that it was forming. But it isn't with much conviction. As an example last night (Say 10:00 EST) looking into the background you saw this phenomenon of testing bars, you then saw it creep up with waning volume and little "upthrusts" (bars peaking up and closing on the low) it was a fairly strong sign of more downside to come, but my question is that about 50 pips prior on the downside signals you saw BUYING bars (Bars testing and closing on the middle or highs.)
So the question is this- any way to tell a difference between a concerted "markdown" by big money vs. a true breakout? This last evening scenario is playing out to be a markdown, but with obvious signs of buying and selling- it is into gray area once again as to whether this pair is prick-teasing the possibility of heading north again OR going to the basement as the retail trader world seems to be touting (which I think is a load of crap personally)
Thanks all!
Sledge