I've noticed this too and of course it's always a heartstarter waiting and believing in your decision while it slowly goes backwards along with your balance until it eventually turns around and moves up.TraderJoeForex » Wed Sep 14, 2016 6:30 pm wrote:Has anyone else noticed there is often a fairly consistent retracement pattern following a CSS cross, It is most obvious on H4, D1 and W1 but occurs on all timeframes.
It doesn't happen on every cross .. perhaps less than 50% but waiting for this retrace before entry can offer much lower risk, drawdown and more winning trades.
Here a few screenshots looking at D1 past few days... I have put a horizonal line/arrow to mark the area/candle where there were opportunities to jump in after a retrace. Where this pattern occurs price retraces towards the high/low of the actual candle where the CSS cross happens. Since we need to wait for that candle to close for a valid signal, waiting for a retrace can usually offer at least 1 ATR price advantage, sometimes more.
I am using the CSS cross and then HGI and Halftrend for added confirmation - when they all line up you can be almost guaranteed of a solid move in the right direction. I'm also staying out of some crosses until the breakout goes through any strong R/S lines.
As with most things the real struggle is in the mind with patience - especially here in Australia where the GP D1 candle closes at 7am and then it is another 8-9 hours before London opens and the action starts happening.
