From FF,
"How do you define a direction change, for example cable this week, the main direction this week is down, did it change to up during new york session and why?
It's easy. If the top of the week was formed first and before the bottom was formed then the direction of the main move is down and vice versa. Current week's top on Cable has been formed on Monday at 2.0444 and the bottom of the week so far is at 2.0257 which was hit yesterday. It means that the direction of the main move of the week is still down and will be changed only if Cable gets above 2.0444. "
Basically saying, if we are below the week opening we are in a weekly downtrend, if we are above it, we are in a weekly uptrend. The same goes per day. If we are above the open, we in an up direction, if it is below the days open, we are in a downward move.
Subscribe to:
Post Comments (Atom)
Where did you find that? It's a bit like FSP and DIBS thinking.
ReplyDeleteIgor's comments on the Igrok thread.
ReplyDeleteSimple but extremely important. A little different to Dibbs as it is basing it on the daily open rather than the first hour bar of the Euro open.
More similar to Joels weekly open thinking.
Yes, it is a powerful concept.
ReplyDeleteGiven it is forex, it's hard to say when the "open" is. The thinking behind DIBS' opening level is: when is the most people awake with the deepest pockets? Certainly not 00:00GMT (apparently this works with the Yen pairs for obvious reasons...) And FSP uses the same 0600GMT open level as DIBS. Buy when above, sell when below.