Mis-colored Daily Candlesticks
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This trade, entered at the vertical line, had a starting position about halfway down the tube, and as a result, offered only about four pips maximum profit. Note that this trade was made contrary to the four-hour baseline.
I could be making these kinds of trades left and right if I were not eating right now. But I prefer to make them via Binary dot com rather than OANDA, so that the potential return is as high as $35 to $40 as opposed to a mere 25¢.
The above scenario might possibly be unfolding right now! However, at the moment, AUDUSD looks more convincing...
Take-profit Targets:
You see what this means, don't you? For all intents and purposes, the Tube is always in control, except during less volatile periods within a given session, when the Maximum Range of One-hour Candlesticks or the Tunnel might also play a role.
It appears that with this type of trade I should set my take-profit target for the middle of the envelope.
You are not going to see rates make contact with the bands forming this envelope except under the most volatile conditions, and by then, price will already be into the four-hour baseline price range levels, at which point, you should follow the directions for Category #4 pullbacks.
Set your take-profit target for the "far side" of the tube.
Once rates reach these levels, watch for a reversal in the Tube first and in the 3 fanning moving averages next. Then enter positions in accordance with pullback categories #1, #3, and #6.
Once rates enter this region, watch for a reversal in the four-hour baseline. Then enter positions in accordance with pullback categories #1, #3, and #6.
Set your take-profit target for the opposite side of the tunnel.
You see what this means, don't you? For all intents and purposes, the Tube is always in control, except during less volatile periods within a given session, when the Maximum Range of One-hour Candlesticks or the Tunnel might also play a role.
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I have three levels to the four-hour price range, and EURUSD and NZDUSD are sitting in the first lower level. AUDUSD is sitting right above it. The TUBE on EURUSD has flattened out and NZDUSD's TUBE looks to be initiating an upward hook, not to mention its three fanning moving averages appear to be trying to reverse their alignment. NZDUSD is solidly in the lower day-range reversal zone, and EURUSD and AUDUSD are sitting right above it. Also, AUDUSD still has an upward sloping four-hour baseline.
So, will these "guys" be turning north any time within the next six or so hours and then continue to rise over the next one, two, or few days? I don't know, but I plan to record what happens. (EURUSD just took a little plunge down to 1.1753. That was kind of weird.
Maybe I can scalp a couple of pips real quick.)
Yeah, that was right neighborly of EURUSD to be so cooperative...
(EURUSD rose another seven pips, so I cheated myself quite a lot, but better safe than sorry.)
So, will these "guys" be turning north any time within the next six or so hours and then continue to rise over the next one, two, or few days? I don't know, but I plan to record what happens. (EURUSD just took a little plunge down to 1.1753. That was kind of weird.
Maybe I can scalp a couple of pips real quick.)Yeah, that was right neighborly of EURUSD to be so cooperative...
(EURUSD rose another seven pips, so I cheated myself quite a lot, but better safe than sorry.)
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This little study is OVER.
A little while back I “finished” my attempts at supposedly “finalizing” my chart setups. Then a week or two ago I completed the task of what I called “optimizing” these configurations. But I still needed to “perfect” the way I applied all of this. (Boy, that’s a lot of scare quotes!)
Keys to this goal were:
- Incorporating a more holistic perspective to my trading by always remaining cognizant of what things looked like from a daily, four-hour and hourly standpoint while operating in a fifteen-, five-, and one-minute environment. It’s not exactly like I wasn’t doing this already. But it’s just that I needed to place a much greater emphasize on it, to heighten my awareness of it while interpreting the market.
- Recognizing that the four-hour price range is the foundation on which price action is built. Not four-hour charts mind you, but four-hour price ranges. I’m now conceptualizing them as akin to the backbone of the Forex market, on which the rest of the “body” is constructed.
- The “TUBE” is king. It rules! If one wishes to know where rates are going—look at the TUBE!!!
- The Sidewinder, which is now designated as Sidewinder Jr., was too sensitive to momentary price fluctuations and had to be enclosed inside Sidewinder Sr., which was constructed based on a slightly higher timeframe, and paints a more valid picture of when rates are genuinely reversing direction at the short-term binary option (or scalping) level.
But, if I were closely monitoring the position (and never going to sleep) I could have ridden the pair down and up two times, compiling a little bit of profit going each direction, been there when it finally broke the third time, ridden it up when it reversed direction to climb even higher, and then been there again for the monster payoff when it finally came down “for reals.”
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Yes, AUDUSD, EURUSD and NZDUSD turned north that very same hour, just after I went to bed, so I missed my opportunity to capitalize, Dagnabbit!
Tuesday / August 11, 2020 / 9:45 AM PST
You set your stop loss slightly below the TUBE, like you were supposed to, but this was not sufficient...
So, from now on, to be safe, set your stop loss ten pips below the TUBE instead.
You should have made a dollar from this trade instead of losing one...
You set your stop loss slightly below the TUBE, like you were supposed to, but this was not sufficient...
So, from now on, to be safe, set your stop loss ten pips below the TUBE instead.
I selected a take-profit target of 75.68, which just so happened to be near the convergence of both a horizontal and “statistical” (or price-range) support level (see previous post). This turned out to be just about right given that AUDJPY pulled back maybe 20 pips or so after hitting 76.66, and resulted in about a 35-pip gain.
