2016-01-12_00-26-25gbpaud

This chart suggest a higher probability for price to come down.

The reasonning for my thought is the following. Price finds itself near the upper Bollinger Band.

If you remember correctly then the bands contain price 90 to 95% of the time as long as price stays “inside” de bands.

This means that price already extended far enough making it ready to retrace to the lower band.

Secondly the stochstik seems to be wanting to cross down from over to below the 80% level.

Third the bollinger bands itself are moving towards the inside showing lack of volatility meaning sideways action instead of expanding to the outside where an outbreak would be expected.

As the last point I would like to mention that so far price has been providing us with lower lows and lower highs as can be seen with the arrows displayed on the chart.

BEST OF PIPS

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.