Looking at the second upward rally from the swing low (fractal) I see a 2 inside candles indicating the upward rally has stalled. The last thing a trader wants to see in an upward trend is a stalled rally. A stalled rally is indication traders are undecided as to whether or not to continue to push price higher. Following the 2 inside candles I see a Doji. Again, a doji is a candle indicating indecision on the part of traders to move this market higher. Again indecision is the last thing traders want to see in an upward trend as it indicates traders are not all committed to an upward trend.
So now I know the first rally from the swing low indicated price action was rejecting higher prices. Then, during a second rally attempt by price action to continue the upward trend traders became undecided about moving this market higher indicating traders are not committed to this upward rally. This doesn't sound like the beginning of a new upward trend, it sounds more like a correction to the previous sell off from the the major resistance trend line identified on the monthly chart.
So now I know the first rally from the swing low indicated price action was rejecting higher prices. Then, during a second rally attempt by price action to continue the upward trend traders became undecided about moving this market higher indicating traders are not committed to this upward rally. This doesn't sound like the beginning of a new upward trend, it sounds more like a correction to the previous sell off from the the major resistance trend line identified on the monthly chart.
