Textbook 1.6 fade play it was... I shorted on a moderate size and scalped quick 20 pips (about 3%)... Should have held longer though...
LOL... if something isn't clear ask coz I'm trying to be clear and I don't mind being asked. K/R in candlestick terminology is different from that used in Bar Charts. Don't confuse the two. I have posted and today reposted examples of Key Reversals using bars, not candles. Try googling bar chart key reversals. There are several types but I have only shown the best ones imho. Glad you are finding my use of timeframe interaction helpful.
Now I finally understand why I misinterpreted K/R too, I had allready done a google but had missed the difference between candle and bar charts. I'm just back from my dayjob, had to stay longer then usual today, and wasn't able to follow during the last three hours, once again a big move. Was there anything that gave this away, yoohoo ? The only thing I see is a kind of flag-formation on the 15 and 30 minute charts, with some tails on the hourly chart. Was there anything else I missed.
Ah I see! Now if we can just figure out how to reverse that (so that the stamp is 6 minutes earlier) then we don't need chart reading, just copy winning trades posted on the forum 6 minutes before they happen yoohoo, thanks for the clarification.
LOL CV I was out enjoying pepper steak in a Cuban Club OK I'll do a bit of a post mortom. Much earlier I called for a downmove to be followed by a big up move and a bigger downmove. I was using the 4 hr chart for that and could see that a sell off was due in the hourly but there was not enough energy to bring the 4 hr down. It needed to go down, then much higher and then a big move down. Problem with only getting a bar every 4 hrs is that I can't really be sure if some of that move will carry over to the next day. Let's put the pieces together because although it's hindsight, when you have a better grasp on how multiple timeframes fit together you'll be able to stitch the 1 min to the 4 hr and have the answer. Let's start with the 1 min. I have posted the 1 min as I left it earlier to go for a meal so all the T/L are as earlier. There was a fluid move and falling knife K/R. The K/R is enough but if you have it on Support then it's a must. Again this became a perfect fluid falling knife K/R on the 5 min with a strong "I want outta here" tail. Next it became a nice Harami with a strong "I want outta here" tail on the 15 min. Note the continuation signal on the 15 min at the trendline so the break said more upside to come. The ball was passed to the 30 min that has a continuation signal resting on the PP and followed it with a fluid K/R top. When we look at the hourly chart as soon as 1.5950 broke we had a fantastic Engulging Candle with a huge tail following on from 3 other tails that already told us supply was being swallowed. As soon as this supply was gone it's going to pop hard. This is war and if they throw everything at it and it keeps eating it, those shorts become longs and bang it up hard. Way before all this the 4 hr had a fluid pull back, a huge tail and an engulfer up. This whole move was the fulfillment of that expectation. Getting the direction right allows us to concentrate on holding longs or if we short, being aware we are counter trend trading. Attached is the 1 min Falling Knife K/R on the T/L.
Short at 1.5987 with a break of the multiple timeframe T/L going back nearly 3 hours. Target is R1 at 1.5974. Stop at 1.5990 just above the T/L.