Thursday, July 12, 2012

Trend continues, avoid weak pre/early US candles



The charts are essentially the same. The trend clearly continues in line with D chart with 1 hr lower highs. The weak pre/early US positive close reversal candles (marked x on 1hr) would be ignored (as posted numerous times here and at forex factory) waiting for opportunities to sell again.

The 5 min lower highs (see gu) were too early for Mrs V. The pre US counter trend move up, see x on 5 min chart, would be ignored (as per our rules) waiting for the trend to resume.

Mrs V did not trade these as she was not in front of the computer for long today, but our rules are clear and its nice to see a chart and confidently be able to say this is what we would be looking to do.

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