Wait 20 mins and try again

Wait 20 minutes and try again. I picked up this simple idea from a fellow trader at forex factory. When higher lows or lower highs are running nicely a move will be followed by a short period of consolidation before moving again, 20 minutes or so.

There are exceptions of course. When price moves aggressively away from a moving average (chart has 8 lwma and 20 ema) due to news etc a longer period of consolidation may be required.

The gu 15 min chart shows that idea clearly. When price consolidates back to the ma's and gives a good candle (solid engulfing close little/no lower wick or shooting stars) the moves down continue. The x's show the areas where quick moves away from the 8 lwma need consolidation far exceeding 20 mins before continuing.

The eur chart has one strong news move away from the lwma. Takes around 60 mins to show an engulfing negative close and thereafter hugs the ma.