I wanted to get the feedback of fellow traders new and experienced on the way they take reversals and continuation in confluence zones in trending markets between 5m-4 hour charts. In the spot fx market.
I understand that continuations make up 65-70% of developed market patterns and reversals make up 30-35%.
To my understanding for price action to make a continuation it usually stabs through the Support/Resistance zone or a momentum candle then pullbacks, which may been seen in lower timeframes for it to hold to make a continuation. Reversals usually make a pin bar reversal signal at a major structure level or between 38.2 - 78.6% fib level at times a double pin bar. I also seen at times price hugging the S&R lines especially in the Asian session coming into Europe for price to pullback and breakout only for it to fake out and then breakdown or a true breakout after a false breakout. Also, price tends to have a control point at 00 numbers with it either poking through and reversing or blasting through and continuing.
What's your experience been like? Please stick to the topic.
The following user says Thank You to pipsaholic for this post:
Yeah, the GBP/JPY is good as well as the USD/CHF and GBP/USD on breakouts the EUR/USD has a lot of fakeouts in my experience. Has there every been a study done by anyone through the major pairs on fakeouts?
The following 2 users say Thank You to pipsaholic for this post:
Yeah, I am starting to believe that it happen today! on the AUD/USD for me trading a 123 pattern price broke structure and bam it reversed even more while this pair was apparantly the strongest bull out there today than any other!