On Feb 25 EURUSD formed a Doji (see black triangle).
The following day the market closed below the low of the Doji triggering a Sell signal (see red arrow).
Next, a series of red arrows indicated the continuation of the downward trend.
On March 9th, the market posted its first green candle indicating the market had moved too far from the 10 and 20 period EMA's. This was an indication price was ready to revert to the mean (10 or 20 EMA). This is also a signal to close Short positions.
On March 11th, a new upward trend was about to get underway as indicated by the green arrow.
On March 12th, this last Friday, There was no follow-through to the upward trend as price respected resistance from the 10 period EMA.
I now wait for the market to tell me what to do before making any trade decisions.
The following day the market closed below the low of the Doji triggering a Sell signal (see red arrow).
Next, a series of red arrows indicated the continuation of the downward trend.
On March 9th, the market posted its first green candle indicating the market had moved too far from the 10 and 20 period EMA's. This was an indication price was ready to revert to the mean (10 or 20 EMA). This is also a signal to close Short positions.
On March 11th, a new upward trend was about to get underway as indicated by the green arrow.
On March 12th, this last Friday, There was no follow-through to the upward trend as price respected resistance from the 10 period EMA.
I now wait for the market to tell me what to do before making any trade decisions.