DislikedDear Ghous/All, As many other, I am also a long time silent follower of J16 and now this excellent thread from Ghous. Need your view on USDNZD Failed Fakeout. What could have prevented us from taking this trade. RN 0.84 ??? {image}Ignored
The strong close on the fake out bar itself. Yes, there is a wick to the upside but there is absolutely no information there to confirm that there was some genuine selling coming into the market due to the small size of that upper wick.
Remember, at crucial swing points you are likely to expect some kind of a knee jerk reaction regardless of the motives of those that make up the trend. You need to be able to differentiate between true selling and the knee jerk, and the best way to do it is to 1) validate the location and 2) look for a favorable fake out bar with a long fake out wick and a very telling close on it.
g.
I believe . . .