The forex market on the daily chart formed both a small double top and double bottom over the past 3 weeks. This is a Breakout Mode pattern, and it is within a 2-month trading range, which is a bigger Breakout Mode pattern. Traders looking for a trend just have to wait.
Most traders are looking for reversals every few days, and they are taking quick profits. Everyone knows that the trading range has lasted a long time. They expect it to end soon. But until there is a clear breakout, traders will continue to look for small reversals.
Overnight EUR/USD Forex trading
The 5-minute chart of the EUR/USD Forex market has been sideways overnight and its range is small. The low is above yesterday’s low, and the high is below yesterday’s high. Today therefore so far is a small inside day. The range is so small that it has been difficult for scalpers to make even 10 pips on a trade. However, unless there is a series of strong trend bars up or down, day traders will continue to look for small reversals to scalp.
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