1hr candles suggesting down. See 15 min arrow up, loads of hammers ie tough to be selling in there. See 15min arrow down an engulfing lower close turns market in direction of 1hr. Nice 5 min lower high with 2 shooting stars.
Another FXPro data outage. Data became sporadic at 16:58 server time. Then no data at all between 17:04 and 17:28. And even now, the feed is freezing from time to time.
As you know, using the 1min chart is something I've been working on lately, so I just wanted to make sure I have a good understanding of the way you use it. Still working out the best way to implement it for myself.
So basically you either:
1) Have a rejection at a pre-defined level that you consider an important potential turning point (likely based of 4HR+ time-frames). The rejection happens without strong price action, such as a hammer or shooting star on the 15min chart or higher. Because of the lack of an immediate price action signal to support your bias, you wait for a second LH / HL to form on the 1min as confirmation that direction has indeed changed.
or
2) Have a rejection (at a pre-defined level?) that you consider an important potential turning point. However, this rejection is accompanied by a strong price bar such as a hammer or shooting star on 15min chart or higher. Because of this additional piece of evidence to support your bias, you are further assured that the market will turn, therefore taking the next LH / HL that forms off the 1min chart rather than waiting for the 2nd.
You also mentioned using the 1min entries on reversal plays when the market has run, ie. your 125 pips GU (not lately though). Would these specific daily range type of reversals apply to either scenario above, or if I'm reading what you wrote correctly, only to the second scenario where strong price action was present?
I often get asked when I use 1 min lh/hl entries. 2nd lh/hl at a key point is one, 15 min classic good candle eg shooting stars hammers next 1 min h/lh, when we have a move and trades above/below key level is another.
This is an example of the latter. I missed the 5 min shooting star above the even number, this move/wave lh below the even number. Not a system trade here so happy to exit with +21. I don't post these here as its not basis of thread but I've been asked.
As you know, using the 1min chart is something I've been working on lately, so I just wanted to make sure I have a good understanding of the way you use it. Still working out the best way to implement it for myself.
So basically you either:
1) Have a rejection at a pre-defined level that you consider an important potential turning point (likely based of 4HR+ time-frames). The rejection happens without strong price action, such as a hammer or shooting star on the 15min chart or higher. Because of the lack of an immediate price...
Ignored
2nd 1 min hl/lh.
I think I first came across the idea from a comment made by Chris Lori about discreetly lh/hl leads to a big move often ie each hl/lh is just a few pips difference. OK now you've heard an idea the next step was to get a tradeable idea out of it. It just came to watching lots of charts that the 2nd 1 min hl/lh came to our attention. It often (but not always) co-incides with other patterns we like eg a 5 min hl/lh or a 15 min good candle next 1 min move. So this is basically the 2 options you give above.
125 pip run.
Islander gets great 1 min entries counter trending all over the place. I can trade 1 min entries in strong trends but trying to counter trend everything in sight didn't work for me, was getting 2 or 3 7/8/9 pip losers then hitting a nice 30-40 pip trade and hadn't got anywhere for the day. Thats why I decided to stick to trend as defined by hl/lhs on 5 min as per the thread.
The idea behind 125 pips in London session being that theres a good chance that buying a W or S pivot, round number etc etc can give a good 20-30 pip bounce after a run that long.
You are right I've done quite well trading following trend ever since 15 min was brought in that I cannot actually remember the last time I bought a level at the end of a run. These trades are buying the level ie if gu fallen 150 pips to 1.5000 literally buy 1.5001 not waiting for a 1 or 5 min hl/lh.
Strange morning, when will we fall. Thought 4400 then 4425 (an area that gave a little supp in Asian session and then fell through there nicely). 4425-50 could be areas and if not back up to 4500.
Haven't bought any of these moves as I'm looking for a sell. There was a great hammer earlier on 1hr suggesting up but as we'd already gone up 100 pips where it closed didn't think there'd be much more upside left.
