THIS PAIR SHOULD MAKE FOR AN INTERESTING STUDY: The monthly baseline is bearish, but this pair has turned radically bullish over the last 20 or so days. At 0.9273, it's into the upper resistance zone of the 36-day price range. (If its 36 days, I can probably refer to this as the monthly price range, don't ya think?) So, will the rate come down from here, in spite of the more immediate bullish sentiment? (USDJPY is in a similar situation, but does not yet betray any inclination whatsoever to fall.) It's already been dropping for about a week, so will it continue to do so? Not only is the daily trend bearish now, but price has fallen below the two-day baseline as well, which suggests that this pattern will indeed continue—plus, the eight-hour baseline turned south too, about ten to twelve hours ago. However, there is strong temporal support (as viewed on a one-hour chart) at 0.9266, and statistical support in the form of the 90-minute price range beginning at 0.9259. Statistical support from the four-hour price range begins at 0.9253, and at 0.9239 from the five-hour price range. Since no pair should be deemed overall bearish from an actionable/practical perspective until the six-day trend line is sloping downward, I'm going to have to conclude that the right move to make would be to buy this pair if and when the eight-hour baseline turns north following price's entrance into the above defined region of support (as illustrated below).
So then, here in Test Case #3, the absolutely horrendous 13:87 reward-to-risk ratio is to supposedly be offset by the hypothetically near 100% probability of the pair still being in-the-money at expiry five hours from now.
I have to reject the above strategy! However, I could cash in on these three OUT-of-the-money contracts right now, which I purchased based on the FOUR-hour price range, to recoup my earlier loss... So, as of this moment, here is where I am putting my focus: The four-hour price range at 0.35% to 0.50% deviation (with 40-minute baseline reversals) The five-hour price range at 0.55% to 0.65% deviation (with 40-minute baseline reversals) The 6-day price range at 2.00% deviation (with 90-minute/2-hour baseline reversals) The 2⅔-day price range at 2.50% deviation (with 90-minute/2-hour baseline reversals. The 6-day trend The 8-hour trend Such a focus would have resulted in a 100% success rate today and a payout of $15.15 rather than $11.43
For intraday trading (which virtually guarantees a profit every single day) place your focus on trading when there is harmony between the 13-minute through 90-minute baselines.
It is permissible to enter a long position with respect to a given foreign currency pair in the last five cells in its corresponding row are all green. It is permissible to enter a short position with respect to a given foreign currency pair in the last five cells in its corresponding row are all red.
For intraday trading (which virtually guarantees a profit every single day) place your focus on the eight-hour and two-day price ranges.
Thursday / March 25, 2021 / 11:15 AM PST Not so fast, my friend. Subsequent observations suggest that, from a swing trading perspective, six-days is too long of an interval to serve as a practical measure in the decision-making process when it comes to entries and exits. It now seems more likely that the most profitable strategy for executing successful swing trades would be to enter positions upon reversals in the eight-hour baseline in the direction matching the slope of the two-day baseline instead—irrespective of what's going on with the six-day trend.