anon301501
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Do you know what was going on? If so please enlighten me.
https://www.mql5.com/en/charts/8359612/gbpusd-m15-forex-ltd
Do you know what was going on? If so please enlighten me.
Looked at your chart link and saw the spike at 11:00 GMT with a question mark.
That was my question on this thread.
"At 7:05 am (GMT-4) GBPUSD spiked down dramatically then bounced off daily sentiment level S1 at 1.3938. Was this price action due to last Friday in the month bank corrections? I cannot find any news to explain this event."
What is your knowledge about the spike?
The point about the VRM is that it does not know when tsunamis will hit Japan or how and when banks fix their books at the end of the month. But it does predict levels about which the market moves in response to news and sentiment. Hence Friday's daily sentiment level S1 at 1.3938. was a good level to look out for.
Was your candlestick analysis in your link above done in hindsight? Or could you see the candlestick where everyone is unloading their short positions in real time?
The 5 minute chart I uploaded Friday has a falling EMA(4,7) channel from 6:25 (GMT-4) . So according to my current trading strategy this is a sell position. The market was already trending down through the VRM levels after a bounce off VRM level 1.3986.
I attach Friday's 5 minute chart again with arrow to show the time I am talking about.
Look where I took the long and got out of my position because I knew they were only moving the market to induce buyers. I'm Proven correct because that spike Takes out all the people who were buying So they could Get out of the short positions they were previously in. Then they Got long to take out all the people who chased the spike short... That's why Fridays are basically the worst days to trade for most traders cause they simply can not see why the market is doing what it is doing...
Thank you for your insight.
My current trading strategy using VRM levels and a 5 minute EMA(4,7) channel would have worked well Friday against the plotting of the market makers.