***FX-JEDI*** wrote: MightyOne wrote:
Most of you are confused...
it doesn't have to be that way.
I am sure that many of you trading this chart would liquidate for 60 pips or less.
RANGE = VALUE
You wouldn't sell your house for far less than it is worth, but you will sell good position in the market for pennies on the dollar?
Ok so I'm not sure which rat I would want to be yet, looking at ur chart, but hopefully I can give you an answer by the time I'm ready to post this, I keep changing my mind, yes I am confused... only a little.... what I think your trying to say is this, the current range you show is 2643pips. The open of that third bar is around halfway in the range by eyeballing it, so either way its around approx 1321 pips to the extremes of the range shown. TRO has been quoting price can do one of 3 things to the previous bar, either it can break higher than the last high, break lower then the last low, or both, or it can just keep within the range for a bit but eventually do one of the 3 things I just wrote.
I guess my answer is shown in the pic below, am I close or just way way off & confused???
There are only 2 extremes
The VALUE of an extreme is based on RANGE
If price is making new monthly lows and you decide to buy then the value of your trade is hundreds of pips because EVERY SINGLE MONTHLY BAR in the history has a range of at least hundreds of pips.
If price is making new monthly lows, but has moved too far based on the range then it is better to wait for an open on a smaller time frame and trade in the direction that price is moving instead of buying the red candle.
Maybe you make money on this trade and maybe you don't, but you are always getting the most value out of your trade.
S&R, supply/demand, Fibo, Momo, --->NOTHING!
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