If price is NOT making a new high then it must be reversing from the high. 1) price within 20 pips of the daily high - that is OPPORTUNITY 2) green candle closes 3) red candle closes - note the low price of the red candle. 4) enter short at the red candle's low price 5) STOP LOSS IS 10 PIPS 6) Take whatever profit you can.
It's done Avery, like I said I've made my point and your lack of response or denial speaks volumes. Get over it and move on, geez.....and please try to stay on topic!
That is an incorrect statement, there are numerous examples where price consolidates before continuing in the same direction. Just because price is not making a new high (or low) it does not mean price is reversing, in fact the more times a level is tested it may suggest that support/resistance at that level is likely to break. Hope that helps.
cabletrader, you know price either moves up or down. If prices makes a new high and backs off, that is a reversal. Price continues to make new highs and reverse. Sooner or later, a big reversal happens and price will make new lows and the pattern reverses. Price continues to make new lows and reverse. Sooner or later, a big reversal happens and price will make new highs and the pattern reverses again. I am talking about the essence of PRICE ACTION not the conceptual ideas that you have.
I see, so 'price either moves up or down'. How about when it's not moving up or down, what is it doing when that happens, what's that thing called? 'If prices makes a new high and backs off, that is a reversal.'....ummm no, not really, lol. 'Sooner or later, a big reversal happens'.....oh right, a BIG reversal, so the other 'reversals' were what, little reversals? Tell me, are there three bears and a blonde broad in this story? Hehe, you couldn't make this stuff up, it's hilarious! Oh dear, someone needs to write a book with all this in, it would be a best seller.....in the comedy section! More, more.....
When it is not moving it is NOT MOVING. You could call it "resting" if you like. cabletrader, while you are poking fun at the facts there are people making money using these facts AND making money is the point of trading.
cabletrader, I am sure you are aware that everything is RELATIVE. If price makes a high and drops 10 - 20 pips, what you would like to call that if not a reversal? If price makes a high and drops 20 - 50 pips, what you would like to call that if not a reversal? If price makes a high and drops 50 or more pips, what you would like to call that if not a reversal? Let's quit arguing over relative terms and concepts and instead talk about absolutes.
... If prices makes a new high and backs off, that is a reversal... - no it does not necessary be a reversal. so you are saying that after 1 or 2 candles of new high and the price backs off and made new low is called a reversal.? When price continue to make new highs or new lows it doesn't necessary mean there's a big reversal waiting for you. it could just mean that the price settled at one stage waiting for a push or it could just retrace and continue its current trend.. Obviously you need to do some study about price action. Go over your charts again. I give you a hint, closing price after new highs and new lows is a lot more important piece of information than simply a new high and a new low, because it gives you confirmation. and do pay attention on support and resistance, as well as swing high and low. Avery, with all due respect, if you want to trade and master price action, throw away your indicators. they are all nuisance. forget about being a pirate, be humble, because market will humble you.