Simple Manual Basket Strategy

There is another way of looking at one-day positions which requires only a little more chart work.

In an uptrend there is a higher probability that a lower close will be followed by a higher close. This is the obvious outcome that price in an uptrend most commonly rises next.

But in forex, the average number of consecutive higher closes in an uptrend is only 2. The probability that 2 consecutive higher closes in an uptrend will be followed by a 3rd is probably about 50% less. The probability of a 10th consecutive higher close after 9 consecutive higher closes is obviously extremely low.

Which might lead to an obvious possible filter rule -
don’t buy on the 3rd day after 2 consecutive higher closes???

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