Both Euro and GBP made Lower Low so there is no crack in correlation. Which means SMT is not valid
Here Euro made Lower Low and GBP Made Higher Low. We have a crack in Correlation. GBP unwilling to go lower which is sign of institutional accumulation. GBP has higher relative strength than Euro.
Which makes SMT valid
Now let’s see inversely correlated pairs.
Here DXY made Higher High and Euro made Lower Low taking both BSL and SSL which had no crack in correlation. So SMT is not valid .
Here DXY made Higher High and Euro Made Higher Low, which makes crack in correlation. Euro is unwilling to go lower , signs of institutional accumulation. SMT valid !
Now let’s see DXY vs Euro vs GBP.
Higher high in DXY, Euro is expected to make Lower Low and GBP is also expected to make Lower Low but when GBP failed to Make Lower Low and fails to take sell side liquidity . GBP stronger than Euro.
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1st thing to look when you open the chart is 'Market structure'
I have marked both HTF & LTF price movements
HTF will give u a better view of market direction,
LTF will be noisy & hard to find the direction for a newbie imo,multiple OBs,FVG/Imblance,will be hard to mark your POI