Look for crosses of the ma (candles that have opened one side of the ma and closed on the other side) that are higher lows or lower highs in their own right or the HL/LH that follows these crosses.
See the charts with some trades highlighted.
Monday, November 16, 2015
Higher lows, lower highs using 20lwma
The 20lwma provides an easy visual for higher lows and lower highs.
Look for crosses of the ma (candles that have opened one side of the ma and closed on the other side) that are higher lows or lower highs in their own right or the HL/LH that follows these crosses.
See the charts with some trades highlighted.
Look for crosses of the ma (candles that have opened one side of the ma and closed on the other side) that are higher lows or lower highs in their own right or the HL/LH that follows these crosses.
See the charts with some trades highlighted.
Test of range
Received a quick question on test of range against the well known break and test of range.
On 2 occasions this morning price came down to the lower end of range around 2.1370 and moved, see the arrows up, going back to the W pivot 2.1394. The importance of the W pivots shown again.
After the Frankfurt open price again moves down to the lower range which holds. We get a hammer, then a classic doji before the engulfing close at the range. Especially considering the time of day after FO, dare I say it 30 minutes into the session (a trader I greatly respect told me about the FO reversal at this time) and volumes now a little higher.
If the lower end of the range was so strong why did price not react like it did twice before and move up?
Like everything else in trading just be aware of the set up and look for it when back testing.
On 2 occasions this morning price came down to the lower end of range around 2.1370 and moved, see the arrows up, going back to the W pivot 2.1394. The importance of the W pivots shown again.
After the Frankfurt open price again moves down to the lower range which holds. We get a hammer, then a classic doji before the engulfing close at the range. Especially considering the time of day after FO, dare I say it 30 minutes into the session (a trader I greatly respect told me about the FO reversal at this time) and volumes now a little higher.
If the lower end of the range was so strong why did price not react like it did twice before and move up?
Like everything else in trading just be aware of the set up and look for it when back testing.
Sometimes it all comes together
GBPAUD straight forward set up. Price tried to move up before Frankfurt open, clean AB move lower, test of lower range, small retrace to set up the lower high. Negative close candle with little/no lower wick closed at/just beyond the range. Perfect set up.
Subscribe to:
Posts (Atom)