Predicting how the market will behave at a certain week day can be done by analysing prior weekdays.
Often times can the short term look back to just the last weekday tell you when the trend will start today.
The medium term view (last 2 weekdays) should fit to the overall trend of the market, so in our example more bullish on friday morning.
However the long term view (last 4 weekdays) gives you the general mood, as you can see in our example friday mornings are usually choppy, therefore eventhough they are trending for the last 2 weeksdays its better to trail stops not too aggressive to avoid getting stopped out.
No matter which timeframe is used the bull trend always reached on 6.26 am its climax, does
this mean its time to short then? No. It depends on Market condition, if there is no save short entry possible its better to forget the few points that can be made on the down move but to concentrate on a re-entry long after 8 am
Same logic for the 10 am news, if price already sold off at 9.40 there is a good chance for a rally prior to the news, even if the upmove looks small compared to the large blue downtrend histogram a quick upmove can bring you more points than a slow downtrending market, where you get stopped out, so trading if there is void is always the more succesful method.
No comments:
Post a Comment