ALWAYS FOLLOW THE WEEKLY TREND
Yeah. TRO is correct.
Methodology of gathering weekly extremes statistics in relation to daily extremes
1-Box up monday to friday candle for a week, ignore sat and sunday candles if any
2-Mark the highest high and lowest low
3-Mark 10% area of the high and 10% area of the low
4-Check monday->tuesday->wednesday->thursday->friday, candle by candle for the week. If monday candle touches one of the 10% extremes, monday scores +1. This goes on for tuesday..etc
5-Move on to next week and repeat
Interesting results. The idea is to find out when and where the extremes of the week are likely to happen. The results show weekly extremes usually happen on monday and friday. Note that we are not going to consider direction at this point; it complicates things plus the issue of direction not a concern here. Direction is really relative here. Price at extreme isn't, so its easier to handle.
Whats more important is opportunities available and to gauge the context of trading weekly extremes. When we know that, then we can really talk about direction.
I am now fully convinced about 3 particular motions of PA / trading rules :
1-Follow the weekly trend; mondays really create the trend + winners wick. Try to enter here early via the breakout at a extreme. If you manage to do so, ride on it until wednesday. If you have a strong heart, ride on it until friday.
2-Wednesdays are good for range trading; since it shows the lowest occurrence of creation of weekly extremes. Breakouts can occur, but it will not be as strong.
3-Fridays can either finish off the weekly trend in the same direction, or try to make up some ground against the weekly trend. This explains why it can be a mixed day plus traders are offloading their positions if they decide holding trades over the weekend is a risk.
Pretty good. This helps to settle the mind better for the entire week + help the trader to plan way way better.