DislikedThis is my first post and i am still absolutely new to system.
Wasnt last D1 close in GU good cross and reverse buy? I hope i got it right.
Sorry i am unable to post charts but should be easy to check for all.Ignored
I'm only about 1/4 of the way through the EO Hater original thread but i've only seen him take these trades on M15. I'm not sure if they play out the same way on D1 but maybe Ken can advise as he stuck with the original thread almost from the start.
I have never taken one of these trades on M15 personally as i'm not convinced that they work as well as they once did. I don't think we need to anyway. If you are trading a few pairs with this approach, you'll get solid setups most days on at least a couple of pairs without taking the cross trades.
What you will find is that on decent sized daily candles like that, the following day will begin with a retrace back up (in this case) or down the candle before a fresh move if we are starting to trend. This retrace will often give you an indication of the strength of the move as well. If it were pushed up 50%, there are still obviously some buyers with strength. If it were pushed up just 38% (fib level) then it's a strong looking move with sellers in control.
Put a fib on the daily candle, pull it from the top to the bottom and look where it is bouncing off right now? Bang on that 38.2% fib level. That's not to say it may not push further up with another push north but i'm personally looking for a short now.