Disliked{quote} Timing isn't your issue farix. I would say a resolute confidence is missing. What you don't want to do is guess. They'll clear highs/lows to pick liquidity up(either to adjust inventory or initiate with macro flows). It'll either be there or it won't, simple. What will make it easier is this. 1. Macro flows (A little work but fairly simple). If you want an example just let me know. 2. Hint: spot FX price/prices just shouldn't be where they are at times. In simple terms...they are lying to you. You just don't know it yet.(If you knew they...Ignored
DislikedAm i understand good this system if i will looking for shorts in this blue area in EURCHF pair? https://charts.mql5.com/6/354/eurchf...al-markets.png CADJPY can i buy immediatelly at Monday open, isn't it? https://charts.mql5.com/6/354/cadjpy...al-markets.png GBPJPY buy https://charts.mql5.com/6/354/gbpjpy...al-markets.png AUDNZD sell https://charts.mql5.com/6/354/audnzd...al-markets.png AUDJPY buy https://charts.mql5.com/6/354/audjpy...al-markets.png...Ignored
As skfx pointed out, what we have to look in case price break a previous high or low is if there is liquidity there or not, in some cases we can jump straight with our trades as soon as price reach our levels, but it require some real understanding of what's going on, and it is less safe anyway.
So we look for liquidity, what does that mean.
Let's take for example a previous relevant high breakout, traders (the real ones) bring price up there as they are looking to sell high.
Now, if a trader want to sell, but if nobody want to buy, he will bring price down.
So what do he need are buyers that would buy the contracts from him, without market going down. He also want to sell high of course.
What do he do then, he will buy instead of sell, letting price go UP, breaking a previous relevant high, hitting the various sellers stop-losses (buy orders!), inviting new traders to buy as they see breakout and think a new uptrend is starting.
Price will continue to go up as long as new buyers hysterically join the market and no sellers are there (NO liquidity!).
Our trader will wait untill most of buyers have bought already, only then he will start to sell them all he want to sell (liquidity is back), slowly, and he will do at high prices!
At this time, the majority of traders belive that market is trending up, so they will continue to buy anything our smart trader will sell them.
The market is now liquid again, the up-move is having a pause, the up momentum is slowed (our first signal!).
Buyers are still beliving on the uptrend, and they are still buying, so as soon as our smart seller finish his selling operations, market go up again, hitting once again the highs.
The last wave of buyers join the market, the last stoploss of previous sellers got hitten, the liquidity is low again as our smart trader have already finished his selling operations, the result is a big spike to the upside (exhaustion move and doubletop, our second signal! at this point we would make our sell high trade!).
Every buyer have bought already, there are no new buyers, not at these high ridiculous prices.
It's time for our smart trader to sell again, this time with the only purpose of bring down the market!
There are no buyers left (no liquidity once again), so the market go down easily, attracting also a new wave of "sell-high" sellers, some buyers do take profits, some other got stopped out, everything seems to produce a down-move effect.
Once again, as market continue to go down, the majority of traders start to see a down trend, and here we go everybody is selling, down momentum pick up, the next relevant low is reached, and our smart trader is preparing to start buying again soon.
This is more or less what happen again and again on every timeframe on every market on every single day.
Sometime by looking at a chart you can see the whole story clearly, and you can trade with great accuracy and strong confidence.
Some other time, the chart is not soo clear and the situation looks difficult to be understood.
What we want to do is trade only the clear situations, if we are not sure about what's going on then we are not taking any trade.
Update: the above story is just my theory of what do happen everyday, my opinion.
So it does not necessarily reflect the truth of what do really happen, it is just my theory.