Back at support. Easy buy? Two clues say maybe not

Price is back at the low. Easy buy?

Two clues on this chart say: maybe not.

This is euro yen, one-hour chart. Price keeps returning to a floor near 178.1.

Clue one: weaker bounces. The first bounce off the floor reached 179.12.

The second one only made it to 178.55. Buyers are running out of steam.

Clue two: lower highs. Each high into the floor is lower than the one before.

Sellers are stepping in earlier each time, pressing price into the floor.

Weaker bounces plus lower highs. When you see both, the floor often cracks.

So the answer is: don't buy yet. Wait.

Here's what happened next. The next candle closed well below the floor, and price dropped to 177.33.

Anyone who bought the low got stopped out.

So when do you buy? Wait for a candle that closes back above the floor.

Here, that came later on September 30. After some chop, price climbed to about 179.3 the next day.

Save this. Weaker bounces and lower highs: don't buy the floor. Wait for a close back above, then buy.

Your turn. Price is back at a floor, and the bounces keep shrinking. Buy, wait, or sell? Comment below.

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