EUR/JPY

Monthly chart.


First put obvious areas on the chart to show where price has been and where it is likely headed to for a target. Here we see a rapid and rather violent decline in price and as rapidly left supply, it approached demand in a sheepish manner. Note how price slowed down and wound itself into tighter falling ranges as demand loomed close. This happens on all times frames and while it is not the only approach used, it tells us a story. Here it meant the pro's were waiting for the time to reverse the market after a large drop in price, the best time to do it. Once the emotional card is played the herd will follow blindly.

The reversal came almost as swift as the decline and only human thinking causes this. Something will fall in price faster than it rises, humans are by nature negative when it comes to value.

From this chart we know that where price is now, its path is still bullish and the target has enough free space about the most recent supply to still be wide enough for profit to interest pro money.

Weekly chart.


At the bottom of the chart is the box showing demand and the obvious move up from that. The blue line shows us where price has in the very recent past found enough buyers to allow a clean and obvious place to move away from. The small box above that blue line is a decision point where price hesitated after it broke the small recent supply as well. This was a test to see will sellers come back into the market and this is also done on all time frames and all markets, it will be done in other places too to test for the strength of the opposing force. Its a smart way to get in at low cost, and get out at low cost if your wrong. Only pro money will do this because the herd and neither organised or have sufficient funds to keep a move going.

Above price is thin box showing the next batch of sell orders. There is nothing to hold us up if we wanted to take this long after we see some kind of support and continuation. 650 odd points is a good profit margin no matter what your account size once its traded sensibly. But before price goes up, it first has to come down and the same holds true for opposite trade.

Daily chart.


The most commonly viewed time frame in trading, its closing price is telling.

The only new item drawn on this chart is a blue line, it was not possible to see this level of detail on higher tinme frames and it gives us some more intel. It shows up price hit a tiny but significant enough supply area to stop price in its tracks and send it off into a range for a few days. We also see price made a second attempt to push through and once again at an even lower price than the blue was enough to send it back for the past two trading days.

Now the pro's are left with a situation where pushign hard from here could cost a lot of money and then will could try a exploit the weakness of the herd. They could sell short from here for a day or two, three etc.....and once price hits the lower box, buy into this and send it back up with enough very low cost long orders and build enough momentum to get through the blue line.

Given price is now in a range and the longer it stays in the range, the more spectacular the break will be. The bulls dont have the advantage here yet given there is still some supply over head and until thats broken they have a hard job. Another trick that would also work is a large spike through the rest of supply and close lower. That will clear out the last of the short orders and stop out the same orders once the pull back is deep enough. You can do great things in the market if you have the wallet for it.

4hr chart.


The last comment I made above is fleshed out a little here. If price cant push though the blue line then it can come back down the bottom of the range shown by the black line and see can it find more long orders to push higher, or better again is to break that line and get more folks short and bring it down as close as possible to the lower box. The herd will at this stage be fully commited short allowing enough time and orders to go long placed into that selling.

There is around 110 points between the line and the top of the box and that can be stretched into what will look like a very convincing few days of selling.