Wednesday, February 13, 2013

Flow, engulfing close at end of range

I have been swopping messages with someone on a set up that we like.

Either in trend where one good candle can signal resumption of trend or counter trend where we are looking for flow to reverse on 1hr with a 1hr candle pattern i.e. multiple candles.

GU gave examples on 11th and 12th, see arrows down. The GU arrow down left is also a lower high after divergence. RSI divergence on the highs on the 10th at 1.5845.

Asian session this morning so much to early for us. Just another example After yesterday's wide range 127 to 125 the move up to 126 could have gone either way. The arrow down confirms where flow confirms as a lower high, negative engulfing close (below last 2 candle closes) right at the edge of immediate range.


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