Sometimes i find these pearls and i can't stop laugh
MightyOne wrote:I am starting to feel better, maybe I will start posting more...
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MightyOne wrote:I am starting to feel better, maybe I will start posting more...
Jalarupa wrote:Keep that level in mind on the bounce back Mira... GREAT SHORT opportunity on the Failed Zline....!
MightyOne wrote:I put an 'x' on the pattern closes and used TRO style arrows to indicate bars that broke out of a pattern.
Keep in mind that how I interpret H4+ bars is not necessarily how I interpret smaller charts.
Day 1: price opened higher than the blue bias line so we trade long (this is also the monthly open).
Price closes weak indicating that the current state of the expansion is in the downward direction.
Day 2: price crosses the first relevant close and then reverses past its own open indicating that nothing has changed,
price is going down.
Day 3: there is a pattern breakout.
The previous price action is that of overlapping bars and a cone and there is no reason to expect that price will thrust its way
through the zero-line at this time.
Many times there will be that second thrust, a breakout of a breakout, but in all probability the next candle that closes in the same direction is going to be smaller or there are going to be overlapping bars; I think that it is better to just take your money off of the table and wait to see what price does.
Day 4: price returns to the pattern, if you were long from a smaller chart then you would exit after this large bar closed.
The idea hasn't changed, the pattern is and has been lower closes, we are looking for shorts.
Day 5: as expected, a secondary thrust upwards after a large bar.
If price could consolidate above the blue line, on a smaller chart, then I would consider the possibility of a rise to the extreme of day 1...
but this didn't happen (see H4 chart below).
USDJPYDaily.pngUSDJPYH4.png