A solid reversal on cable on the 3-minute chart signaled as always with volume and one which also introduces another plan of the volume price analysis methodology which is support and resistance.
First, we saw the breakaway from the volume point of control (yellow dashed line) but note the volume which is falling and sign the move lacks strength. Then we see the stopping volume on the narrow spread candle, and this is followed by the strong reversal candle on high volume. The rally then develops breaking two levels of resistance denoted with the red dashed lines of the accumulation and distribution indicator, and punctuated with weak selling pressure. The weakness of the move lower indicates the bullish momentum is set to continue with the trend monitor below also confirming this sentiment. You can discover more about volume price analysis in my free forex webclass which you can join here : http://bit.ly/3cB64cH
By Anna Coulling
Charts from NinjaTrader and indicators from Quantum Trading
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