The forex market on the daily chart has been sideways for 2 weeks in a triangle. It is after an expanding triangle. A triangle after an expanding triangle is a diamond pattern. Since the chart has been in a trading range for 4 months, it is already in breakout mode. A Diamond pattern therefore does not change anything. Until there are consecutive closes above or below the 4 month range, traders will continue to take quick profits and look for reversals.
Today is Friday and this week will likely remain a doji candlestick and inside bar on the weekly chart. A doji is neutral and an inner bar is another model of Breakout mode.
Bulls want the week to close above the opening for the week to have a bull body. This would slightly increase the chances of higher prices next week. The bears want a bear body, which would slightly increase the odds of lower prices next week.
Day to Day EUR / USD Forex Trading
The 5 minute chart of the EUR / USD Forex market has been in an overnight trading range. Additionally, he’s been in a trading range for 4 days. It is at the top of a triangle on the daily chart. All of these factors increase the chances that today will remain a trading day. Day traders look for inversions and scalping for 10 pips.
Any day can turn into a trending day, but given what’s going on, chances are that today will still be a trading range day. But if there is a series of strong trend bars in both directions, day traders will switch to swing trading.
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