Hi....my take on this strategy. What Merlin probably was referring to was nothing else but the mean reversion strategy in some form. Many people have successfully coded it and do use it.

update.........

possible direction

update

eurusd my view

eurusd my view...

Firstly as per PA, its having an impulsive upmove. Secondly, see the slope of the upmove......does the momentum seem to be receding? are the sellers coming into play yet? .....

usdcad

EU 1 min chart

scalping trade 1 min chart

Bang on! I like the way you have done ur analysis....

Eurusd has formed a strong base as shown in the chart. So it's entangled between 2 major zones. More of a corrective downside. Look to buy as per price action fir the week.

Depending on the reaction here, may be a trade opportunity...

Turned up from support zone.....Bullish...

Also if u see, what u marked as ab, may actually be a cd.

The power in your bc leg is more than ab leg

Excellent Mr Pip........just brilliant.... whats this 8855?

On the larger tf, it may hit the 1300-1330 zone now....any takers?

and now..... url

Its been a corrective move up.....and they generally don't seem to follow any pattern.....like this one decided to take the steep uphill route.... On the larger tf, it may hit the 1300-1330 zone now.....so lets try and ride the waves....