Sunday, August 21, 2011

Mon 15 Aug






Hindsight is a wonderful thing but going into this week the D chart shows a positive close and then a higher close hammer last Friday. RSI is crossing the 50 line/red average line so a generally positive day can be expected on Monday. The 4hr chart is above its 8 lwma, RSI 50 line, RSI crossed upwards, all positive and suggesting trend up.

The 3 candles on the 1hour are 6am gmt (arrow down), 8am gmt (left arrow up) and 12 gmt. If your focus is up due to the D and 4hr charts you might not sell after the 6 gmt shooting star, or if you did sell accept its counter trend and be happy to bank pips.

From the 5 min chart. There is a nice counter trend lh sell arrow left. There is a hl buy before the close of the 1hr candle back into the D/4hr chart trend. After the positive 1hr close there is a hl right on the round number 6300 that most likely would have hit a small stop.

The 1hr is now moving up, we are above 8 lwma and above the RSI 50 line. The 1hr candle closes are shown and the higher lows, see the 2 right arrows up. It seems the LO head fake is the move down today. Price eventually runs up to 1.6410 with the US session continuing the London direction.

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