Disliked{image}{image} Excellent Terry. Would you like to comment on IrishCraig? I am better reading bars, not candles.Ignored
I do like your comment about the two day formation as it does provide a much better look at what price may do following this.
In the case of the USDCHF, the two day formation was followed two days later by the bearish straddle which indicates the two day formation was pretty strong and valid.
Also I did comment there was no signal to do anything on the GBPUSD but following that candle, a nice BUEOB formed which I didn't pay attention to and resulted in a nice follow up move to the upside.
It is true that price is at a pretty strong resistance level and getting far from the worker shadow so even though bullish, we need to be ready for a retrace. So making the right trade decision for a long entry could result in DD.
Having said this if we drop down to H4 or H1 we can get a much better long entry with minimal risk.
Looking at the H1 on Friday we had a nice bullish straddle which provided a very low risk entry using a stop on this time frame. Entering above that straddle and a stop below the previous low would have allowed us to get into the longer term trend with very little risk. As of this morning that trade would have resulted in a RR of 1:3.
Regards
Terry
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