Saturday, February 9, 2013

Flow trend, counter trend

In trend we look for flow to continue in particular on 1hr. Higher highs higher lows or lower highs lower lows.

Counter trend we want flow to prove over many hours that price does not want to continue. We would be looking at higher lows/lower highs, double tops/bottoms and morning/evening star patterns. By their definition they are multiple 1hr candle patterns. Finishing off with an engulfing close would be good, price closing above/below the last 2 candle closes.

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