Daily Pull Back -> EURUSD

8 Mar 2022

The 4 hour has come into a Weekly/Daily Demand Area, and has gave us a 4Hr CHoCH. Down on the 15 we see our first impulsive move as we enter the range giving us our first Change of Character showing the institutions hand, the lows then get taken, Shortly after a big impulsive move into supply. Possible short term supply as there is a lot of imbalance and we are having very impulsive buys enter the market. The Supply area entered isn't a strong enough area: isn't enough liquidity i.e. Fuel to push the market through the Weekly Demand. But react to order flow not your predictions and ideas or you will get trapped into the wrong side of the market more often than not.

Reason for a daily pullback is because we broke out of the daily range and after a break of structure we expect a pullback on that TF so using the smaller time frames and confluences like weekly and daily demand we start to build the idea of the pullback forming possibly catching the move but understanding it could just be a pullback. Being a daily pullback idea our targets will be into the next obvious Daily/4HR supply where we will take partials and let the rest run whilst we start to watch order flow in our POI's.

The 4 hour showed us a subtle CHoCH implementing Demand stepping into the market. The first impulse got taken out so initial buyers got stopped before a quick reverse stopping the late sellers out.