July 2014

massive accumulation 7.28

As of 7/28 2014 the GBP/AUD pair has been accumulating on a massive scale leading up to the major news that we have got in the coming days. The news includes the following: EUR German Price Index, USD Gross Domestic Product, USD Rate Decision, EUR German Unemployment Rate, EUR Consumer Price Index, Followed by USD Non-Farm Payroll & ISM numbers. These are all high moving news events, that will push the markets in most every pair due to the large amounts of traders that will be active these days to get a piece of the action.

The way to go about trading this particular set of circumstances is to look beyond the overall direction it seems to be floating towards, and instead trying to identify the belief being created here by the Market Makers. Where are the active highs and lows? Which ones have they pushed through already? How would a person in a long feel about their position? How about a short? Identifying how emotions are moving in the market is key to forecasting a profit release (Click on the picture for a bigger view).

What we can see here is a snap down shortly into the accumulation phase followed by a slow accumulation to the upside. Notice in the picture shown the most recent candle has a wick that comes right down to the middle of the accumulation zone, then starts backing off to head long again . Small details like this can make the difference in our analysis of the market and how a move might play out.

As the week unfolds, watching for these signs the Market Makers have left can reveal the true intention of the Market. There will no doubt be plenty more manipulation leading up to the news events mentioned above, however with the right mindset and fair assumptions you can be on the right side of each of them. Stay tuned for more market analysis as the week unfolds.

 

-Shane Guth