Trading with 5m Force strategy, Day 26

Today also was not a good day for force strategy. Before open of Tokyon session, price started to move down. After open, price started to moe sideways.

Figure 01: EURUSD 5m chart

Price produced hidden bullish divergence. Price then without moving any direction, it started to move sideways. Now let's see some example of other trade.

Figure 02: GBPUSD daily chart.

Here this trade is done according to this rule.

After waiting for quite some time, price started to show some big move. Price also started to produce a sell signal. I took the short signal.

Figure 03: EURUSD 5m chart

But I lossed 12 pips. I entered the position without any confirmation. Look How I missed the point. MACD bars were shortening at below zero level. After this price produced a good sell signal.

Figure 04: EURUSD 5m chart

Grabbed only 7 pips. Price then produced a good long signal.

Figure 05: EURUSD 5m chart

Look, everything was in line. A good long signal. It shouldn't go wrong.

Figure 06: EURUSD 5m chart

Why didn't this signal work? Look the weekly S1 was just 6 pips above when I took the signal. So there was not enough space for the price to move. Lost 12 pips here.

Figure 07: EURUSD 5m chart

Look how the price action looks above. It's forming a bear channel.

Figure 08: EURUSD 5m chart

Price started to move downwards. Price then reached DS1. Price is likely to pull back from DS1. But price didn't pull back, rather went down and fromed a pennant.?

Figure 09: EURUSD 5m chart. "Pennant"

?No more today. Not a good day for force 5m. Average pip collection was not bad. 25 pips gain for today.

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....