Trading with 5m Force strategy, day 10

After the weekend, price started with a gap upwards and moving the price downwards starting from above the DR1 to daily pivot. On it's way, before the tokyo opena 1 good sell and after the tokyo open 2 small sell signal by the force basic system.devloped.

As usal I was retruning home from my work when these signals were developing. After that, I was just marking the tops without any reversal in effect, I found that price is making a cup. Look the top marking, cup is yet to be formed. Cup and hanle pattern is bullish continuation pattern and this is seen usually in larger time frame. That's why I could not believed it at first. So I was sust waiting patiently.

Price is moving upwards to form the cup. I wanted to go long here but resisted myself as there was no valid force signal on screen.

See the zoomed out view of the cup. A bullish channel before the cup. So an expected bull move after the handle formation and breaking of upper line of the handle.

On it's way to build the cup, a good sell signal was there. I took it and lost 20 pips. Then took another two long postion following the advances force rule. Gained 10 pips + 23 pips.

Cup is completed, handle is also commpleted. Price broke the upper line of the handle. A good long signal also developed at the sam place. I took the long position there.

Now look at the zoom out view of the scenario...

Now I want to show you another intersting thing here. This last long signal here started immediately before the London open. See how did it happen....

I bagged 12 pips as I was going out to attend a book fair. But left some position open. Came home after about 3-4 hours. Guess, what happened?

Bagged >50 pips. Entry was just above the DR1 but below the weekly pivot and exit was just above the DR2. Kept some position to see how far the price can go... I'm doing this just for learning purpose.... Price action.

Total pips: -20 + 10 + 23 + 12 + 50 = 75

Though my trading was completed for the day, I was studying and monitoring the price action. Price is now downwards. I tried to find out any cause. Found that there was a double top that I missed.

While trying to dig out more, I found that I missed another thing...price formed the double top immidiately after the NY open and ralied down towards the daily pivot, crossing all the dr2, weekly pivot, dr1 levels.

So, today, price moved downwards at the beginning of Tokyo session, rallied upwards at london session and again movied rapidly downwards after the start of NY session. I need to monitor these points on a regular basis. Still missing these things. Actually I was not monitoring price action. That's why I was missing a lot. Another thing I missed.

Missed a bearish stoch divergence. What happened at one time..... now price is on oversold area and preparing to get out. Before doing that, in might produce a double bottom. An inverted hammer is already there. Price should go up but price movement is slow above the daily pivot and monthly S1. This is also the last hour of London session.

Chart patterns to identify future currency movement

Identifying chart pattern is one of the very important part of technical analysis. I was studying about chart patterns recently. During reading, it seems to be very easy to understand as the training materials shows the charts with marking the chart patterns. But when I try to find out a chart pattern in a live chart..... I feel like, I'm lost. I find nothing. I think, it needs more reading and regular practice of trying to find chart pattern.

I think, zooming out a live chart to get an overview of a larger picture in a different time frame might help finding a chart pattern. Yesterday, I was looking for chart pattern.....
Currency pair: EUR/USD
Time frame: 15M

Yesterday, I plotted the lines and thought it to be a pennant formation. Which means, price will continue previous trend. That is, if it forms after a downtrend, it will go downwards. It's a consolidation phase. So I went to bed assuming, price will go downwards and planned to show my analysis in the blog.

But today I found that price went upwards to previous swing high level. So I started to think, what wrong I've done here...why my calculation went wrong. I went through my tutorial again and then I found that I was wrong in my analysis in the very beginning. Pennant form after a very strong trend, almost a vertical trend. But here the market was almost moving sideways if we can just ignore that one small swing.

See, when it formed the ADX (14) was below 20. So strength of the trend was very poor. In fact it was a triangle, a symmetrical triangle (again, I'm not sure. I'm giving my opinion according to my own understanding by learning from online free tutorial). A symmetrical triangle can lead price to any direction. So when a symmetrical triangle forms, many traders gives two pending order, one above the triangle, a long position and another below the triangle, a short position. When one order hits, other closes. In this case price moved upwards.

A gain of about 40 pips. Not bad..... Holiday period now....markets should be ranging with some exceptions....