Bear in mind however that when carrying out the above procedures, traders must never lose sight of the towpath of the local canal, the banks of the river current or the shoreline of the ocean flow, given that there is a drastic increase in the statistical odds of the intraday stream and causeway reversing direction at such levels.
Now that NPP seems to truly be fully developed, I've returned to my manuscript for the purpose of finally finishing my book, and the first change I've made is to include a specific strategy for position trading foreign currency pairs, which I will begin using in my "Position Trading Foreign Currency Pairs (Forex)" thread to forecast price action based on the corresponding computer models starting tomorrow.
I'm not disagreeing with the above statement. However, I think it is better to use even more "immediate" measures. More specifically, when the intraday stream and the causeway are both sloping in the same direction, a maneuver that works extremely well is to enter positions as the short term moving averages are exiting pullbacks when the slope of the causeway as represented by the lower panel histogram is greater than 0.169231 or less than 0.169231 AND the slope of the intraday stream is greater than 0.0359 or less than -0.0359.
When I clicked on the Time Options, ForexFactory detected my location, so that now it is giving me the economic events in the Pacific Time Zone (my time zone) rather than the Eastern Time Zone...
Tuesday | March 14, 2023 | 12:25 AM Pacific Standard Time I encountered a problem with the above plan in that at the point price reversed direction to join the trajectory of the four-hour trend, the four-hour trend had also reversed direction so that the two of them were still out of sync. The one pair where the slope of the four-hour trend remained the same was EURGBP, which made selling this pair the logical choice. However, I decided to wait until after midnight to do so given that the number for the Claimant Count Change was scheduled to be released at that time. The -11.2K figure did not seem like it was going to send the pair climbing higher, so I went ahead and sold the Euro-Pound at that time.
With about an hour and a half left to go, the strategy based on the four-hour directional tendency is poised to deliver on all but one of the contracts purchased roughly six hours ago... Whether or not such outcomes can be replicated day after day remains to be seen.
NOTE BROTHER! Here is the one thing you did not factor into your decision that you learned from subsequent price action... There is a previously unidentified, yet super significant statistical support level (and resistance level) related to intraday price ranges that you have NOW inserted into your day trading forecast models. At the time you sold EURGBP (indicated by the x) the rate did not have much room down below before it was going to run smack into this measure. Hence, this level will always need to be consulted before making intraday purchases going forward.
It turns out that this measure was previously identified. It just so happens to be the three hour price range envelope, which I had elected not to plot on my charts before, having been satisfied with the two- and four-hour measures by themselves. The reason its use comes into play now is because I wanted a measure that mirrored the gist of the dynamic/adaptable price range envelope pictured below (which probably needs to be widened just a bit) but that didn't evidence so much zigzagging. Well...it just so happens that the three hour price range envelope fills the bill.