Octagonal shares (LSE:OCT) have been in a repulsive
equilibrium phase for many months before the price started to make some bullish
attempt. Although the recent consolidation was to the downside, the market was
generally ugly.
There has been a bullish breakout in the chart; plus
it is thought that the breakout would be sustained. The ADX period 14 is at the
level 30, indicating a strong pressure. The pressure would become stronger when
the ADX level rises further from that level. The DM+ is above the DM-, testifying
to the bulls’ hegemony. Meanwhile, the MACD (default parameters) has both its
histogram and signal lines above the zero line. This is a Bullish Confirmation
Pattern in the chart and long trades are now recommended.
The price may reach the supply zone at 1.00. It may
even breach that supply zone to the upside. At a point where traders think a
price may be corrected, it may go further higher. This is an area where Smart
Money goes long, thus driving the price further higher.
This article is ended by the quote below:
“When
you see statistics with a great monthly gain, or a win rate for a month or two,
you have to be aware that the population that the statistics is drawn from is
not great. The probability of results being down to chance is a lot higher the
fewer results there are. Getting good statistics and plenty of results is
important for finding out whether systems work. I would caution over being
wowed by statistics with a short lifespan, they may seem impressive but do not
come up well against a robust test.” – Golden Member (Source: www.babypips.com)
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
Learn from the Generals of the Markets: Market Generals
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