I'll back up my comments by hauling up this game play to better explain what I mean.
There are examples of contradictory price action out there all the time, & it’s not exclusive to any particular timeframe either.
You can’t insulate yourself from being whipsawed out of minor price irregularities, but you can better prepare yourself for it if you possess a broad appreciation of the wider picture.
Point in question being this AUDUSD hourly view from earlier this month. If you took TRO’s comments to heart, then you’d have given up the ghost on the downtrend as price backed away from the circled area (failing to make a lower low) & printed a series of higher high & higher low on the 60 minute timeframe.
Did that signal the end of the downtrend?
No. There was still a little more juice left in that tank as you can see by the example below. The highlighted squared area shows price action actually resumed it’s original bias until it butted stiffer support lower down the ladder. How would you have summized that??
One way would be to always be aware of what’s occurring via the wider view. The weekly timeframe clearly focuses the .7800 level as a pretty solid s&r zone wouldn’t you think?
It’s not a guarantee that events will play out exactly as they did previously, but when things fail to pan out as you anticipated, at least you got a reference point to maybe assist in offering an alternative view?
Point is, don’t take everything you read & hear on a public bulletin board as gospel. Check it out first & ensure you confirm for yourself that what you read stands up to inspection. If it doesn’t, then always ensure you possess a back-up plan to pull out of your pocket.
