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Exploitation of Market Truth
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Author:  guandi [ Wed Feb 29, 2012 1:40 pm ]
Post subject:  Exploitation of Market Truth

Hello all,

i remember reading this from some time ago and this is what sticks out in my mind:

and i quote:

"Now, 2 patterns of market behaviour happen on a regular basis:

1) the price breaks to new high's (or low's)

2) the price reverses from new high's (or low's)

They happen regardless of time frame (with the obvious limitations explained above)

They are phenomena that can be exploited without the fear if found out by others, that they might cease to exist.

H. Rearden
"
the post is here : http://www.forexfactory.com/showthread. ... ost2589240

Look at any daily candles, we can see almost always see wicks, i do not think we can find many daily candles without wicks. Wicks == retracements from daily high or low

Now the question will be how to take advantage of this to our benefit.

what i have done:
1) price moving towards the daily high or lows
2) i wait for price to stall, reverse and i jump in

The question will be how do we determine reversals is happening and how do we set our take profits.

-guandi
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