Even a "falling knife" has a context to it. Any strong move has sprung from a strong confluential area, like the recent move on the EUR/USD. It was stopped in its tracks by the upper TL. Once it is broken, then the move will pick up steam again, then we'll get a correction, and then another move north.
This is why I m an advocate of stationary S&R's. After all, if the previous parts of the methodology already suggest a strong break north, and then a strong pullback, then would it not be beneficial to know where the pullback is going to be, then take advantage of the next strong move? My WR1 is 1.4011, so it suggest to me the initial break of the TL might be contained. That will be my TP. After the move south from the proximity of 1.4011, then I'll look for a consolidated move north, and then it should be read for The Move--that is south.
BTW, I know the term "chasing the trade" is like a cliche, but it is so true. The markets do have their predictable ebb and flows, and so it is up to use as traders to discern that, then join in the fun. This is why this "predictable ebb and flow seems to indicate that 1.4011 is next on the radar.
This is why I m an advocate of stationary S&R's. After all, if the previous parts of the methodology already suggest a strong break north, and then a strong pullback, then would it not be beneficial to know where the pullback is going to be, then take advantage of the next strong move? My WR1 is 1.4011, so it suggest to me the initial break of the TL might be contained. That will be my TP. After the move south from the proximity of 1.4011, then I'll look for a consolidated move north, and then it should be read for The Move--that is south.
BTW, I know the term "chasing the trade" is like a cliche, but it is so true. The markets do have their predictable ebb and flows, and so it is up to use as traders to discern that, then join in the fun. This is why this "predictable ebb and flow seems to indicate that 1.4011 is next on the radar.
Do u watch the movement of the pairs continously or once in a while. Wat do u suggest from your experience
Regards
Raj