USDCAD - Daily Time@Mode Analysis - Top Reached
Thanks to @IvanLabrie who is constantly following and trading FOREX who pointed out this chart to me this morning, but it was so clear I felt it was worth showing all of you. The pattern here is as clear as you want to find in a trade setup. @IvanLabrie caught it nicely in his analysis and here it is plain and simple.
#1 - Start the trend at the lowest price on the chart.
#2 - Find the most common price since the low (disregard all price action to the left, initially)
#3 - Find the range around the most frequent price (aka - mode).
#4 - Project up the range starting from the mode to get a target price.
- Enter long when you see range expansion from the mode and a low > mode.
#5 - Exit at the target.
You can exit and go short too at the target, but that is another style of trading that you may only want to do once you have piled up some profits first. The best way to sell at the extreme is to wait for the range of trading to contract, as it did in this example yesterday. And you you can sell with 1 average range as your stop loss and target the mid-point of the range initially. You can add to your position as the market falls under the highest low, as it has done today. You want to see "range expansion" to the downside to confirm your trade as soon as possible too, which is happening right now as I type. Range expansion is when the decline today is greater than the range of trading yesterday.
The KEY to this too is the Trend Indicator at the bottom which shows the path of least resistance of the market by looking for this indicator to be on a 2-month high to look for longs and a 2-month low to look for shorts. The key is that selling short up here is a contra-trade to the trend, so you don't get greedy when trading against the trend, rather, you look for fast profits and if they don't emerge, you walk away.
Feel free to send charts to me or to publish charts that set-up with this methodology so we can all find great trades together.
Time@Mode
Tim 8:52AM July 9, 2015
#1 - Start the trend at the lowest price on the chart.
#2 - Find the most common price since the low (disregard all price action to the left, initially)
#3 - Find the range around the most frequent price (aka - mode).
#4 - Project up the range starting from the mode to get a target price.
- Enter long when you see range expansion from the mode and a low > mode.
#5 - Exit at the target.
You can exit and go short too at the target, but that is another style of trading that you may only want to do once you have piled up some profits first. The best way to sell at the extreme is to wait for the range of trading to contract, as it did in this example yesterday. And you you can sell with 1 average range as your stop loss and target the mid-point of the range initially. You can add to your position as the market falls under the highest low, as it has done today. You want to see "range expansion" to the downside to confirm your trade as soon as possible too, which is happening right now as I type. Range expansion is when the decline today is greater than the range of trading yesterday.
The KEY to this too is the Trend Indicator at the bottom which shows the path of least resistance of the market by looking for this indicator to be on a 2-month high to look for longs and a 2-month low to look for shorts. The key is that selling short up here is a contra-trade to the trend, so you don't get greedy when trading against the trend, rather, you look for fast profits and if they don't emerge, you walk away.
Feel free to send charts to me or to publish charts that set-up with this methodology so we can all find great trades together.
Time@Mode
Tim 8:52AM July 9, 2015
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