Something that intrigues me in forex. Yesterday, we had a very large candle on the 5second chart to the downside in what was a little uptrend, this candle was approx. 20/30 pip in value, this to me is institutional selling (in this case). Today, the Turkish Central bank has purchased $100m ? Are we in for a big drop on both the euro and the pound or most others against the dollar? I remember when china suddenly and not for some years raised their interest rates a few weeks ago and the euro along with the GBP dropped like a shot duck over 250pips.
Yes, I'm still long from yesterday:clap:
Here is my 4hr chart showing a clear and strong uptrend, I find these first on the daily using my indys. For support/resistence, I buy near the bottom or tops on the trendline, sometimes I will just stay in and ride the pullbacks. Price has twice broke through the top trendline. What I find difficult, is judging a precise entry, for example, when price is going back down, it may hit my 18ma support or go further down the bottom trendline? All I can then do, is rely a little on my ATR (average true range). As I do not know how to even begin to work out the varying s/r on the different timeframes, I am forced to only go with the daily for trend and entry on the 4hr (probably not a bad thing). Would you agree with this strategy or would you add something to it.
