Hi Liam,
Was trading a bit on your directions EURUSD, BRN 1,1000.
Took position and saw Banksters action to keep price below 1.1023
See 1m chart attached.
Is this typically how they operate when they do not wat price to exceed e certain level?
If this is the case and on can detect these levels…. This would make the levels easier to trade…
Any comments from your side?
My Response:
About your question…
Here’s the deal:
For bank-level action, you’re looking for a sharp rise or dip, not just a consolidation… Yes, there’s some bearish activity in your scenario, but it’s not intense or dramatic.
When the banks swing into action at a level, they cause a sharp decline—indicating a substantial order from them. It doesn’t guarantee a reversal, but it ups the odds. That’s why I always recommend watching for a quick move out of a supply or demand zone.
It’s a heads-up the banks have thrown a big order into the ring.
Let’s break it down…
To trigger a reversal, incoming orders must be swallowed up by a larger volume of opposing orders. So, if a flood of buy orders push price up, we need even more sell orders (bigger in size, not number) to tip the scales.
Here’s the key:
The larger the order, the more dramatic the price shift because more orders get consumed.
Here’s how it works:
Say we have 10,000 buys pouring in and the banks sell 20,000.
The 10,000 buys get matched and the price drops until it’s paired with another 10,000… The process halts once the remaining 10,000 have been matched.
Hence, a sharp rise or fall indicates the banks have placed a hefty order, suggesting they’re guarding the level and resisting further price increase.
Further declines underscore this, as it implies the banks are either placing more trades or bagging more profits. Both scenarios should lead to a reversal—a retracement for profit-taking, and a more significant downswing for a reversal.
Getting the hang of it?
Remember, it’s not an exact science.
Multiple sharp rises and dips don’t always indicate a reversal.
But it’s a solid strategy to gauge if the banks are playing defense.
Hope that helps.
PAN.