DislikedI don't know yet that is it going to be a trend reversal or pull back.
Now the question is then why I took these trades when I knew nothing about it.
I simply played support and resistance (you have already noticed that) - please see the horizontal lines on my charts defining the zones. Currently both these pairs are testing these lines on the reverse side.
EURCAD - When the price reacted in the same fashion twice before when it reached around 1.2890 and also based on what had happened so far I knew that the chances are very high that this...Ignored
I have been referring to S/R levels especially relating to TDI crosses to make sure you are not trading into resistance or support levels.
Currently, I am looking at entry points relating to strong S/R levels. The differing points of view relate to entering as the price pushes through or waiting for a candle to close above/below.
As this week progressed - AUD/USD was in this situation as it approached the 1.0400 level and kept faltering / falling back and then finally has achieved a close nicely above 1.0400 at 1.0482.
The challenge is as you pointed out - get in early ahead of the crowd or wait for confirmation of the break through?
With the Day charts this involves patience and avoiding the need to enter a trade for a few pips. If you study some of the available material - either in FF on the threads, or in the numerous ebooks that circulate with the hope of hooking you for a subscription service, then you will see there is no real fixed rule for this type of entry - it all comes down to your trading style and your trading plans.
My preference is to let the candle close and then follow the momentum of the PA. One very well written article that I have seen, talked to how momentum was perceived / interpreted. The focus was on the second half of the candle's life as this demonstrates the support and demand for the current PA. You can have a great bull push in the first half of the candle with new highs being set, only for the bears to take over which will leave you with a pull back candle with a large wick - this negates any momentum that was achieved earlier in the day. This often occurs around S/R levels and folks get faked out by the initial strength of the candle, only to watch it fall away at the end of the day.
If, however, the bear push continues into the latter part of the day, then you have a strong momentum candle and if this succeeds in breaking the S/R, then look for continued momentum to drive the PA.
This supports the Big E message that TDI crosses are not created equal and you still have to be on your game with the forex basics.
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