Friday, January 27, 2012

Intraday Trading Theory : Counter Trend


Earlier today I posted a sell signal. I did not trade the sell signal (a winning trade), in fact I actually went for a buy.

I tested my Counter Trend method. Still remember that almost every candle got 2 shadows?

If the price retrace upwards, it will form the shadow below the body. So with this in mind, when the price reaches the expected distance to cover line, I went for a buy for a 20 pips gain.

* On a side note, I refer to other currency pair to determine the strength. I'm still experimenting this method.

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