In terms of when to enter that is totally up to each traders discretion. Also if you wait for the for the continuation bar you will have a higher probability but will be risking more pips to the SL. There is no must in trading. What I have learned all these years trading professionally for big institutions is that out of 500 traders on the floor.....everyone has a brain of there own.....and everyone has there own style and experience. So for some people it is a screaming long and for others it needs more or is even a short, it is all what each trader can see. No one is wrong or right....the P/L tells the full story. Thank you for your response and your side of the analysis and wish you lots of pips in 2014!
I assume you are thinking inverse divergence - where rsi made anew low but price did not ?
If you draw a trend line from the lows near the first of the year you can see that
structure has clearly been broken, tested 3 times @ .8350 or so, and there is now
a series of lower lows And lower highs indicating a change of trend to the downside. ?
The candlestick pattern could be interpreted as one of exhaustion, but, there would
have to be some kind of bullish candle before you could call this a long entry.
If this is an A-B-C correction then A = C around .8100 so I'm having difficulty
seeing this as a bullish set up.
Thanks for your thoughts and many pips to you in 2014 !!!!