This trade was a simple trade, where we had trend alignment to the downside. This trade was a classic case of the trend is your friend but we had to wait for a few things to happen before we could take the trade.
At point A we have a widespread down bar with very-high volume. The bar broke beneath the interim support level and the price continued towards the main support level. There was a bounce off the support level and then we see there are two signs of weakness at point B. This is not the level where we would take the trade as we need to get past the support level.
The support level was broken at point C and then we had a retracement of the price back towards the resistance level and we got a VSA principle of No Demand. This was exactly what I was looking for. We had a confirmation of the No Demand and that is where I entered the trade.
Entry Price: 0.64493
Stop Loss: 0.64708
Take Profit: 0.6400
Exit Price: 0.6400
The software tool I use to identify my high-probability trade setups is TradeGuider’s Smart Center Pro. TradeGuider is based on a methodology called Volume Spread Analysis. Volume Spread Analysis (VSA) is a proprietary market analysis method that was conceived by Tom Williams (Chairman of TradeGuider Systems).