I'm on a demo trade right now- trying what I learned out of curiosity just yesterday.
Get a daily chart and find every "THURSDAY" candle going back to June of 2006.
Look at the "FRIDAY" candle next to it.
How many times do you see green next to green and red next to red?
My calculations are that fully 70% of Thursday's trends continue through the trading day Friday.
In fact, if you had simply placed a trade at the close of the daily Thursday candle in confirmation of its trend (going long on a bull candle, short on a bear) and then held your position until the end of the Friday candle and then closing it out you would have averaged 50 pips a week on a simple, mechanical entry and exit- five minutes work- tops.
Yep, tis so.
But this strategy would have been a train wreck in the trading weeks prior to June of 2006. The market changed and now it seems that Thursdays are good confirmation for the direction Fridays will go- at least on Cable.
Get a daily chart and find every "THURSDAY" candle going back to June of 2006.
Look at the "FRIDAY" candle next to it.
How many times do you see green next to green and red next to red?
My calculations are that fully 70% of Thursday's trends continue through the trading day Friday.
In fact, if you had simply placed a trade at the close of the daily Thursday candle in confirmation of its trend (going long on a bull candle, short on a bear) and then held your position until the end of the Friday candle and then closing it out you would have averaged 50 pips a week on a simple, mechanical entry and exit- five minutes work- tops.
Yep, tis so.
But this strategy would have been a train wreck in the trading weeks prior to June of 2006. The market changed and now it seems that Thursdays are good confirmation for the direction Fridays will go- at least on Cable.
Is your SL my TP?