Note: Setup has not materialized yet, and won't until a bar closes higher without touching the mode.
After a solid rally, EURAUD has paused to build a mode sideways, currently at 16 bars (could still build many more bars at this mode). There are 3 reasons I think an eventual hourly long will materialize from this sideways consolidation.
1.) The fact that the response to this hourly uptrend IS a sideways building mode, shows the unwillingness of sellers to see this pair lower and the unwillingness of buyers to clear out their inventory. (reasoning behind this is a bit subjective, as people could just be selling hard into much larger hands, but the point is that the dominant force at work here is not to the downside).
2.) RgMov, Tim West's proprietary trend indicator, is showing that the hourly uptrend in this pair is still higher, as it has failed to make a downside directional commitment or even take out a serious low.
3.) A traditional RSI 50 level support bounce. A unique nuance about the RSI indicator is that sometimes price will find support at the 50 level in uptrends (or resistance in downtrends).
After a solid rally, EURAUD has paused to build a mode sideways, currently at 16 bars (could still build many more bars at this mode). There are 3 reasons I think an eventual hourly long will materialize from this sideways consolidation.
1.) The fact that the response to this hourly uptrend IS a sideways building mode, shows the unwillingness of sellers to see this pair lower and the unwillingness of buyers to clear out their inventory. (reasoning behind this is a bit subjective, as people could just be selling hard into much larger hands, but the point is that the dominant force at work here is not to the downside).
2.) RgMov, Tim West's proprietary trend indicator, is showing that the hourly uptrend in this pair is still higher, as it has failed to make a downside directional commitment or even take out a serious low.
3.) A traditional RSI 50 level support bounce. A unique nuance about the RSI indicator is that sometimes price will find support at the 50 level in uptrends (or resistance in downtrends).