Taking the new test versions of my custom chart generator for mt4 and the battle station for a spin, and I thought I would share with you something I found.
What you’re looking at here is an 8 hour chart, but with a twist – the candles are synced to the London open, not the New York close. Most traders would not have seen this alternate view of price action before.
There are many reasons why I like 8 hour charts, but I will save that for another time.
We can see the * hour NZDJPY chart is in an uptrend here, clearly creating higher lows as it rides the mean value (a representation of the 10/20 EMAs on the daily chart).
The election caused some turbulence there, but the market maintained strength, continuing to close closes above the mean. Now the market has tested the mean value again and dropped a bullish reversal candlestick pattern.
The rejection candle shows the market holding higher lows here again the mean. If this setup works out, it could be an easy 1:3 reward on risk.
The new version of the Battle Station is also syncing up well to the customized charts, providing detailed messages about the signal, and the custom chart it was found on.
I’ll keep you posted on this setup, let’s see how it unfolds.
Joao Seco
Hi, personally I look for symmetry to find the best retracement entry – so I’ll use the rejection candle as a “mirror” center line. I do not go by fixed percentages, but i’de love to hear how other traders approach this crucial bit.
Many Thanks!
Joao
gadz
Ty for sharing this trade setup good sir. Just a question, do we enter at the 50% retracement of the previous daily candle to go long? (Friday candle)? Thank you in advance