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Originally Posted by rizan
hi ramdas
can u check this chart attachment why its so hard for prices to touch support sma600..
blue = sma2400
red = sma600
yellow = sma300
green = sma150
pink = sma50
res = sma5
n happy new year for you too
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Hi Rizan
Thanks for asking good question.
I have attached EUR/USD chart with three timeframe. 5min,15min & 1Hr.
let us see what chart say on each time frame.
Mark spot on chart's suggest good buy point where price retrach on trend reversal.
If you look at 1Hr chart...You will see sma300 which was acting as Resistance. is taken out with Higher Low on 28Th. price did not touch previous low and cross above sma300.
After this... on 1Hr chart... trader wait for good buy point since UP movement has taken shape on 1Hr.. they look at chart saw SMA50 on 1Hr chart is best buy point... price touch sma50. on 1Hr Chart. and long pos start building up at that point.
How it looks on 15min & 5min Chart.
If you look at 15Min chart...and 5min chart..
On 15minchart sma2400 was action as sell point. so when before price touch sma50 on 1Hr chart it touch sma2400 area on 15min. that is 1.3201
and fall back to 1.3130 this spot is SMA50 Touch on 1Hr and sma300 Touch on 15min and same spot is sma300 & sma600 Touch on 5min also.
there is no SMA below this mark spot.
Regarding your question with referance to your chart ..there is only 8pip differance between sma600 and sma2400. on 5min chart and figure 1.3150.. is playing roll... since trader wait for such figure to touch. in up trend. if 50 was broken then price will open way to touch 25 and up trend will get disturb. so trader do not wish to sell below 50 since sma600 reside at 1.3145 and very less potential ,, so who will take risk to sell below 1.3150 for 5pips ?????? and before that sma2400 is there along with daily pivote point at same point that is 1.3152.
and as you can see on chart price again rebound from sma2400.
Best Regards
Ramdas
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