I have been using the four hour charts and utilizing engulfing candlestick patterns. I have found that they are MUCH more reliable than the shorter timeframes. I only enter the trade though if there has been a 100 PIP move before the engulfing candlestick…in either direction. Is 100 PIPs a significant enough of a move or should I wait for something bigger before I enter the trade?
diferent pairs have diferent volutility, and even the time you trade change the volutility.
first study about a pair to find what´s their average move in one direction and each hours that happen most.
In my testing, I found that after a move bigger than any move in the last 10 days there was a good chance the GBP/USD currency pair would continue in that direction for 2 days. I can’t post a link because it’s against the rules, so here’s a broken link to the article -