Simple's Green Room

[pennies2007]

On confirmed TDI breakouts, what you'll find is that the lower time frames like the 5 and 15 minute charts need to reset from overbought conditions. So we see these long, slow sell offs that lead to a shallow retrace. That prepares the price action to run again. It also sucks in retail traders who are trying to short the pair because they're convinced it's going to tank.

This setup took place on both the hourly and 30 minute charts. That 38.2 retrace let the lower time frames "reset" to get ready for the next move up. It took about 5 hours for the pair to drop back to this point...very slow and deliberate. That's retail selling...not institutional. The big money is ready for the next move up.