Here’s a picture of my usdjpy trade. You can see a couple of candles outside the channel.
Well common sense dictates that this is the aftermath of a trade. I certainly wouldn’t be drawing a channel with candles outside the channel would i?
Well this happens i put in a buy with the SL well within the channel. The next candle shoots right out of the channel and of course i am in a loss and my SL gets hit then shoots right back into the channel and people now see a channel with 2 candles right outside the channel which doesn’t make any sense.
You don’t see that on any trading manual do you? You see candles well within the channel and they are expected to follow the trading rules but in reality my situation occurs and you have price shooting down and then going back above right out of the channel or any other trading method.
I think that the one spike down ran stops to gather liquidity and that there is Fib correlation and stops above to suggest an upside objective. The problem is that although I do think that the dollar index has more of an upside medium term, making the argument for bullish dollar stronger, but I would be very selective of an entry point.
