I will now continue with the trade above, looking at the short term KC chart.
Here is the 5 minute chart of this trade of AUD/JPY taken on Friday at about 2000 hours here in Western Australia. (subtract 8 hours to get GMT time).
By
tymen1 at 2008-06-07
In this trade the KC method proved very worthwhile.
The vertical black line shows the open of the 4th candle and the vectors are shown on the blue Bollinger bands and the MACD.
These vectors are so close to being level that the resultant (pink) is considered level (see yellow oval).
Now the 4th candle opened at 69 and a level resultant means that the best short entry is on the middle Keltner band, which is at 76.
So a little waiting gives us this much better short entry of 76. Ah! ,what a benefit!!
We now progress to the rest of the trading.