EUR USD 15 Min:
Today was a major data release. It matters not the slightest what it was specifically, only that it was due to be a time of extreme liquidity and volatility and possible fake moves by the big boys so that they can then go and take everyone's money in order to make their own.
Yesterday price spiked down with news then channeled to a point exactly equal to the length of the original spike. Horizontal bold dotted line. It was a also a larger time frame channel line touch. Slanting bold dotted line.
The first green arrow is the first trade I posted today and called in the forum AHEAD of taking the trade.
The second green candle is the news trade. When the data was released price spiked down 30 pips. I thought it was going to be another spike and channel down. I switched to the 1 min ready to trade rebounds off the 10 and 20 MA , but price formed a small flag of inside 1 min candles then moved rapidly up. On the 15 min chart it produced this picture of the engulfing candle. A strict wave count from the first high of the day shows the news spike was a low 4 which failed and engulfed up in a high 4 long trade. It was also second test of the measured move of yesterdays news spike and the channel line and the weekly S1 Pivot (bold red horizontal line).
Entry was where price engulfed up becoming a High 4. Position size had to reduced due to relatively large stop loss but I made is smaller by picking the bottom of the 1 min flag as the SL.
Measure the length of the 15 min candle up to the top of the body not including the wick and add that on and you get where price peaked at the end of the day. Yes you guessed: another spike and channel.
Price action rocks.
Thanks as always to Al Brooks. Although how I apply it to the news and failed signals is my own innovation.