Practical Exercise #5

[Wayne Jones]

Hi Rich and All,

 

I have had a tough time looking for suitable engulfing candles on the chart I picked.  I think  I have managed to pick one out.  I have used a USDJPY chart.  As you can see the DOR (in light blue) is right in the mix of the MOR.  Is this normal or am I doing something wrong?

I did find one opportunity on the 5 min chart for the EMA crossover too.

 

See what you think.  If anyone else besides Rich wants to comment on my charts then please do!

 

Regards

 

Wayne

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[Rich Fitton]

Hi Wayne, good work on seeking out the entry features 🙂

Never be hesitant to look for better conditions in other markets if the one you originally picked turns out not to be so promising. When we have the DOR inside the MOR it suggests there is no real directional bias in place yet. You can sometimes get ‘churning’ conditions where the market chops and revolves around without really pushing out to either the buy or sell side. The higher probability opportunities come when you have a clear DOR above MOR (or vice versa).

[Wayne Jones]

Ah I see now! Thanks Rich.

 

It’s best to stay out of these types of situations then I take it?

[Rich Fitton]

Hi Wayne,

Yes, I’d look for clearer opportunities in other markets where you have the DOR inside the MOR. Remember we want to keep those scales tipped in our favour 🙂

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