RE: Forex Technical Analysis 24S18

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Forex Technical Analysis 24S18

in forex •  7 years ago 

I notice you aren't confirming your trend lines. Are you checking for volume on your reversals? Are you checking for type 1 or type 2 closes?

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  ·  7 years ago (edited)

Yes I am checking for volume (check out my Instagram where I have one or two posts about how I use volume). But I don't have volume on tradingview's weekly chart that's why it isn't here... But for sure volume is crucial for my decision when to open a position.

What are type 1,2 closes I never heard of that?

Type 1 close is when the candle closes the wick on the trendline. Type 2 close is when the candle body closes on the trendline.

This means that there was a big limit order that got filled. Usually, institutions will set multiple limit orders so you might see a spike in volume (orders being filled) which confirms that there was in fact activity.

Type 3 closes are closes that either break through the wick or body. I don't enter if I see this type of close.