Just back testing a chart right now as I seen 2 really nice moves that would require a great deal of confidence in this market to trade but I am going to post just for my own reflection and so I remember its something I should look at as well.
so, the yellow line drawn was the previous days high (Friday), price seen a huge spike upwards breaking that high (liquidity catch), before moving back within the previous days range, at this point there are 2 things I see here.
swing fail to the high making the big move invalid, there is tons of liquidity below the range we are currently in, due to the volatile move up. so recovery of the big vector candle up before seeing a recovery of the liquidity below the previous days range is a likely scenario.
then we look for an OTE on the bigger timeframes (I know not the correct way to use the OTE strategy but it still works in this case and the gains are really good. entry at the 0.65 for me SL above the previous swing move up and TP could be lower probably but looking for 50-75 pips and ill take 90 pips because it is a bigger move on a bigger timeframe.
so, the yellow line drawn was the previous days high (Friday), price seen a huge spike upwards breaking that high (liquidity catch), before moving back within the previous days range, at this point there are 2 things I see here.
swing fail to the high making the big move invalid, there is tons of liquidity below the range we are currently in, due to the volatile move up. so recovery of the big vector candle up before seeing a recovery of the liquidity below the previous days range is a likely scenario.
then we look for an OTE on the bigger timeframes (I know not the correct way to use the OTE strategy but it still works in this case and the gains are really good. entry at the 0.65 for me SL above the previous swing move up and TP could be lower probably but looking for 50-75 pips and ill take 90 pips because it is a bigger move on a bigger timeframe.
