VARAUSD - What Is a Golden Pocket? - Explained

6 hari yang lalu

In the above chart I demonstrate the trend line. As you can see it is a region not an actual line. Within this trend line order walls develop or dissolve and as we go along pivot points are created or destroyed. At this juncture price action is still sitting on top of a massive order wall that extends down to about 1190 pips. Volume is very low so in this example if you were to choose to exit your position now you would be selling directly into that order wall and keep in mind that the trend hasn't broken.

6 hari yang lalu

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The Golden Pocket is the region at the bottom of the range anywhere reversals have occurred along the psychological range. Keep in mind that these levels are psychological thus they do not really matter other than they tell us where other traders may enter the market. There has been and remain large order walls all the way down this channel and you will notice a pattern of price retracting into the channel prior to a reversal. Ultimate reversal will occur when the trend itself reverses. For example if this pull back we are witnessing today produces a higher low. Trading a descending range is a little safer than trading an ascending range because price is like a bouncing ball and tends to go back down whilst a descending range has more probability to reverse since it is already descending and in range.