DislikedForex007
I know your post has been well answered by Bundy but I'd like to add the following observations:
1. The PBs on your charts have not yet failed by my crierion - neither the Aussie nor EuroYen have breached the low of the PBs and so any trade taken should still be alive imo. Stops still in tact.
2. I use IBFXs MT4 for forex charting (midnight GMT open) and I've got dojis on both pair for the 13th - not PBs as your charts print. Charts below.
3. Many traders got excited watching those two and other pairs involving the Aussie and Yen during the 13th. As the daily bars were forming it appeared that PBs were in the making, however they all formed Doji's if your data has a 00:00 GMT open/close (although you could argue that DollarYen was close to a PB.) That may be another reason why some got excited and may have jumped the gun before confirmation of the candle at its' daily close.
Not sure if that helps or makes it all more confusing somehow??!!
Regards
JohnIgnored
As for PBs still valid, my thoughts are (without bending the rules to much): (a) when the bar after PB drops that much, that "violates" PB itself - after all, it should have protrude (am I right here?) beyond the bars on its BOTH sides (or am I wrong?), which leads us to (b) waiting for a PB to fail completely (i.e. for the price to drop to the end of the nose) is too much of a risk - when the price goes below 50% fib of PB, that rings an alarm bell for me.
The following comment is off the topic, but if PB is a strong PA, there should be a "safer" entry point. E.g. with inside bars, the resulting movement could be as strong as with PB, but with IBs we are risking MUCH MUCH less than with PBs.
One Chart is Worth Ten Thousand Words.
, but 50% of your trades would not equal 50% of your balance {unless you practice poor MM}.
