I was late to this one as I generally don’t like to hold positions over a weekend unless they are deeper in the money .

K-man gave a great synopsis of what to expect from data this week. So I will show (from a chart view) how I determine strength in a market, using USDCHF as a proxy for the USD.

The three charts below show the USDCHF on D1- H4- H1 timeframes.

  • The Daily shows a shooting star candle on Friday. This could be a precursor to weakness going into the new week .
  • The H4 shows a clear bear engulfing candle  Further weakness ensued
  • The Hourly gave the early clue with a textbook Doji (3 candle) combination .

The down move could be over for now, so I’m not advocating new shorts from here. This is just an example of how you can use candles/candle combinations on different timeframes (in a live setting) to determine direction and most importantly your risk .

 

USDCHF-Candles 3 timeframes

Total of 274 pips post last week using my candle/Fibonacci methodology EURJPY AUDJPY

Your comments are always welcome .

 

 

Horatio Dubsly

Collects more scalps than Crazy Horse and newly crowned Bitcoin & Dow top calling master.
Philosophy: "Trading rules.....it most certainly does"

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Horatio Dubsly

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