Wednesday, July 3, 2013

Avoid weak pre/early US candles GU 2 July

Haven't posted one of these examples for a while. GU pushes up early and rejects. We missed the entry after the move up to the 1 Jul highs failed around 1.5236 after the negative close.

Then pre US session we have a doji marked x then a shooting star. We look to avoid trading weak pre US candles waiting for London direction to continue, in this case the shooting star with little/no lower wick.

We also look at the reaction to levels. On 1 July we had a 60 pip candle (does not matter if its news or not) up from W M2 1.5186 now we have a small doji that is followed by a shooting star. The candles are showing the buyers are not there in the same manner as they were on 1st. That is the doji is not followed by a positive close candle but a negative close shooting star.

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