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 .
Your comments are always welcome .
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