US Dollar/Japanese Yen - USDJPY - 4 hour bar - Time at Mode ....
I was asked to do an analysis of this chart and here is what I have come up with. I do not follow this market and I'm simply showing you how to analyze these bars using the "time at mode" concepts that I have show in other markets on other time frames.
See if you can follow along with the logic.
1. A trend forms.
2. A trading range forms.
3. A breakout of that range occurs (when an entire bar is above the "mode" of the range.
4. A continuation move happens which takes as much time as was at the "mode" AND/OR the price range of the range.
5. A retest of the "mode" occurs after the time expires or else the market is extra strong and will likely make another range and another trend.
6. The power of the market is proven by the market moving in the direction of the breakout in the time suggested.
7. A reversal of the trend is possible if there is no new high (in an uptrend) for 5 bars. (or a new low in a downtrend for 5 bars). At the end of the 5-bars where there is a new trend in place, the price must be above the new 5-day mode to be an uptrend, or below the 5-day mode to be a downtrend.
8. Continue this logic as long as possible.
9. When you are in a consolidation phase that is more than 25 bars at one price, move up to the next time frame (from days to week, or from weeks to months. Move up by a factor of 5.
10. When you are in a consolidation, you may also have multiple trends occurring at once - that is what a triangle, or sideways pattern is like.
11. The more choppy action you get and losses your sustain trading from failed breakouts, the market will soon be ready for a move. Be patient. Nothing is perfect in life and especially not in markets.
12. Be willing to learn how to add to your winners and learn to keep your trading size the same, even after a losing period. If you trade small after a losing streak, you have to increase your trading size quickly or else you will never climb out of the losing streak.
13. Send me any trades to review - I'm happy to help you learn this methodology.
14. Send 10% of your profits to charity!! Life is about helping others.
Trade well - and send me your thoughts.
Tim 11:20AM 107.93... I started typing at 108.13... I wonder if this trade will pan out...
See if you can follow along with the logic.
1. A trend forms.
2. A trading range forms.
3. A breakout of that range occurs (when an entire bar is above the "mode" of the range.
4. A continuation move happens which takes as much time as was at the "mode" AND/OR the price range of the range.
5. A retest of the "mode" occurs after the time expires or else the market is extra strong and will likely make another range and another trend.
6. The power of the market is proven by the market moving in the direction of the breakout in the time suggested.
7. A reversal of the trend is possible if there is no new high (in an uptrend) for 5 bars. (or a new low in a downtrend for 5 bars). At the end of the 5-bars where there is a new trend in place, the price must be above the new 5-day mode to be an uptrend, or below the 5-day mode to be a downtrend.
8. Continue this logic as long as possible.
9. When you are in a consolidation phase that is more than 25 bars at one price, move up to the next time frame (from days to week, or from weeks to months. Move up by a factor of 5.
10. When you are in a consolidation, you may also have multiple trends occurring at once - that is what a triangle, or sideways pattern is like.
11. The more choppy action you get and losses your sustain trading from failed breakouts, the market will soon be ready for a move. Be patient. Nothing is perfect in life and especially not in markets.
12. Be willing to learn how to add to your winners and learn to keep your trading size the same, even after a losing period. If you trade small after a losing streak, you have to increase your trading size quickly or else you will never climb out of the losing streak.
13. Send me any trades to review - I'm happy to help you learn this methodology.
14. Send 10% of your profits to charity!! Life is about helping others.
Trade well - and send me your thoughts.
Tim 11:20AM 107.93... I started typing at 108.13... I wonder if this trade will pan out...
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