PRICE TURN
Posted: Sat Jul 14, 2012 8:48 pm
PRICE TURN
Price "turns" when the candle color of the current candle is not the same as the previous candle's color. In the above chart the candles that indicate a price turn up are marked in green and candles indicating the price turned down are marked in red.
You look for price to cross over the previous candle's open to confirm the turn has been made.
The DOTS on the candles mark the previous open price level. You can see where price crossed the previous open and then reversed. These are entry points.
If the previous candle has a red line then when price is at/near the previous open (red dot) and moving down, you enter the trade short.
If the previous candle has a green line then when price is at/near the previous open (green dot) and moving up, you enter the trade long.
But you are only looking at one time frame and that's where the multimeter comes in handy...
Some trend traders like to enter on "PULLBACKS". The multimeter makes it easy to see when price is pulling back to the next higher time frame or continuing the "trend". The light blue color means price is going up and price went up on the previous bar. Think "light blue sky". The dark blue color means price is going down and price went down on the previous bar. Think "deep blue sea".
Look at the M15 chart and you can see price is now turning up and back to the "trend" on M30. H1 is turning up AGAINST the "trend" on H4 and D1. While price is turning down on W1 and going WITH the "trend" on MN1.
Please post any questions you have in this forum. PLEASE DO NOT PM ME WITH TRADING/INDICATOR QUESTIONS.
The latest version of the multimeter is attached. The line and dot indicator are in the July 2012 MT4 MOTHERLODE.
Price "turns" when the candle color of the current candle is not the same as the previous candle's color. In the above chart the candles that indicate a price turn up are marked in green and candles indicating the price turned down are marked in red.
You look for price to cross over the previous candle's open to confirm the turn has been made.
The DOTS on the candles mark the previous open price level. You can see where price crossed the previous open and then reversed. These are entry points.
If the previous candle has a red line then when price is at/near the previous open (red dot) and moving down, you enter the trade short.
If the previous candle has a green line then when price is at/near the previous open (green dot) and moving up, you enter the trade long.
But you are only looking at one time frame and that's where the multimeter comes in handy...
Some trend traders like to enter on "PULLBACKS". The multimeter makes it easy to see when price is pulling back to the next higher time frame or continuing the "trend". The light blue color means price is going up and price went up on the previous bar. Think "light blue sky". The dark blue color means price is going down and price went down on the previous bar. Think "deep blue sea".
Look at the M15 chart and you can see price is now turning up and back to the "trend" on M30. H1 is turning up AGAINST the "trend" on H4 and D1. While price is turning down on W1 and going WITH the "trend" on MN1.
Please post any questions you have in this forum. PLEASE DO NOT PM ME WITH TRADING/INDICATOR QUESTIONS.
The latest version of the multimeter is attached. The line and dot indicator are in the July 2012 MT4 MOTHERLODE.