+10/+8 EUR/USD has that MACD pattern I was talking about developping on 5 min chart on the long side.
sorry to interrupte, might be a dumb question romik, on page 80, you mentioned about the macd pattern. can you explain how it is used for trading? thanks!
If MACD/histogram is rising (referring to that specific pattern) then when MACD crosses the 0 mark is a buying opportunity, opposite for declining MACD pattern.
thanks romik, does it require that 3 bounces to make it valid or just any rising/falling macd/histogram will do? and what is the success rate like for this type of pattern? thanks again
sometimes you will observe 5-6, subsiding buying/selling pressure, success rate is pretty good on longer time frames. Because it is a significant entry pattern, you will find that on quite a few occasions there is an initial fake move in the opposite direction, so perhaps entering with 1/2 position and adding on continuation is a better approach + scaling in.
Considering that most reversals/continuations are triggered by shorter time frames, perhaps we can see continuation of the uptrend in EUR, but still not clear at this stage. IMO: weekly - ? daily - bearish 240 - bearish/very early signs of bottoming 60 - turning bullish 30 - as 60 15 - looking bullish 5 - nice bullish pattern from Friday, though RSI above 70, so ? 1 - topped