Hi,
after seeing this happen so many times over the last 6 months and having capitalized on it several times as well, I thought I'd share.
After an "out of the blue" strong trending day like thursday(and oddly enough, it usually IS a thursday when it happens), you can almost always predict this to happen:
Overnight and during the London open, price will retreat 40-60 (more can be possible but is rare, I think past 75 would say something is up) pips from the high or low put in on the thursday/trending day and then put in a second day with close to or the same volume pip wise in the same direction.
What this means is that you can almost blindly put in an order at the next S/R zone or trendline you can find in that 40-60 pip area, put a 30-50 pip stop and aim for 100+.
I am not sh*tting you, this is one of the most simple and blatantly obvious ways to get back into a strong trending cable.
Like I said, it seems to like to happen on fridays after trending thursdays, but basically the go 100+, correct 40-60(yes I know that this will also line up with fibs etc, like I said, pick a likely spot to enter), go another 100+ and then rest a while pattern usually unfolds just like this and on any given day pair
It also corresponds to bullish bars/bearish bars quite obviously and coincides with bullish/bearish engulfing candles, DBLHC/DBLHLC etc pp, but all I am saying is that trending waves like this on cable tend to go in two day pairs(monday and tuesday was the same deal as well) and there's an easy way back in...
Just trying to simplify something that can also be expressed in dozens of other ways (elliot, price action, MAs, whatever is your poison)...
Just thought I'd share, since it's sometimes so hard to make it so easy and for some reason one is always too afraid that after one day it might be over and "just as I try to get in" it might reverse. Then you stay out and see another 100+ run unfold....
(If you're wondering why I'm posting so much nonsense, just trying a simple take on something and if all else fails: I was bored!)
Good luck with your trading,
SeekingLight
P.S. I know it also coincided with a data release today, but please get my point, this is not just a data reliant occurrence and I am not a fundamental FX terrorist anyway.
after seeing this happen so many times over the last 6 months and having capitalized on it several times as well, I thought I'd share.
After an "out of the blue" strong trending day like thursday(and oddly enough, it usually IS a thursday when it happens), you can almost always predict this to happen:
Overnight and during the London open, price will retreat 40-60 (more can be possible but is rare, I think past 75 would say something is up) pips from the high or low put in on the thursday/trending day and then put in a second day with close to or the same volume pip wise in the same direction.
What this means is that you can almost blindly put in an order at the next S/R zone or trendline you can find in that 40-60 pip area, put a 30-50 pip stop and aim for 100+.
I am not sh*tting you, this is one of the most simple and blatantly obvious ways to get back into a strong trending cable.
Like I said, it seems to like to happen on fridays after trending thursdays, but basically the go 100+, correct 40-60(yes I know that this will also line up with fibs etc, like I said, pick a likely spot to enter), go another 100+ and then rest a while pattern usually unfolds just like this and on any given day pair
It also corresponds to bullish bars/bearish bars quite obviously and coincides with bullish/bearish engulfing candles, DBLHC/DBLHLC etc pp, but all I am saying is that trending waves like this on cable tend to go in two day pairs(monday and tuesday was the same deal as well) and there's an easy way back in...
Just trying to simplify something that can also be expressed in dozens of other ways (elliot, price action, MAs, whatever is your poison)...
Just thought I'd share, since it's sometimes so hard to make it so easy and for some reason one is always too afraid that after one day it might be over and "just as I try to get in" it might reverse. Then you stay out and see another 100+ run unfold....
(If you're wondering why I'm posting so much nonsense, just trying a simple take on something and if all else fails: I was bored!)
Good luck with your trading,
SeekingLight
P.S. I know it also coincided with a data release today, but please get my point, this is not just a data reliant occurrence and I am not a fundamental FX terrorist anyway.
Trust price. Know yourself.