Some of the typical occurances in the day week in week out. Here's what needs to be taken note :
1. Price hit the range has high probability for the price to reverse or move sideways (especially after London closes)
2. If price hit the range, sometimes it is followed by a "final" push (breaking the range) before a reversal happens. Some like to call it Market Maker manipulating the market or stoploss hunt or the usual "fake breakout"
3. If price exceeds the range by significant amount, most likely the following day its gonna be a quiet market (paying the market in advance).
4. Price exceeding the range more often than not a result of price not hitting the range by significant amount in the last 2-3 days (paying back the market)
This is NOT a trading strategy, just another analysis tool like you would in analysing Support and Resistance or Supply and Demand.
If you like the writeup, give me a follow, find me at youtube 'Sufian FX Trading", reach me at twitter sufian_fx for discussion or questions. Thanks
1. Price hit the range has high probability for the price to reverse or move sideways (especially after London closes)
2. If price hit the range, sometimes it is followed by a "final" push (breaking the range) before a reversal happens. Some like to call it Market Maker manipulating the market or stoploss hunt or the usual "fake breakout"
3. If price exceeds the range by significant amount, most likely the following day its gonna be a quiet market (paying the market in advance).
4. Price exceeding the range more often than not a result of price not hitting the range by significant amount in the last 2-3 days (paying back the market)
This is NOT a trading strategy, just another analysis tool like you would in analysing Support and Resistance or Supply and Demand.
If you like the writeup, give me a follow, find me at youtube 'Sufian FX Trading", reach me at twitter sufian_fx for discussion or questions. Thanks
Comment:
**Think of the pair have a minimum quota for the day (in the case of EURUSD, 65 pips daily). If it exceeds the day, the following day they have smaller quota (paid in advance). If the pair failed to hit the quota, they need to pay it in other day(s)