Best pattern would be a lower close :- double R41 and then a test and reject pattern under Wednesday's 50% level to verfiy the move down.
Note:- last 41 point bar needs to complete to move into Wednesday's trading so it won't surprise me to see a 'pop' upwards."
Yesterday's Report
Yesterday's view was based on the R41 pip range and price trading on the side of the 5-day 50% level, with the bias to continue down.
I also understood that the last 41 pip range had to complete before price moves into Wednesday :- Open Trading Principle.
So I knew I could be stopped out until that bar had completed. I took the punt that it was going down, but went up.
Using the exact same techniques on the JYP as I do on the SPI, (spiral filters) , and also understanding that most waves in Forex markets move in 4 hour periods.
2nd short trade occured just after 3 pm yesterday, but I took 15 pips to make up for my earlier loss, plus price was above the 5-day 50% level:- Using open trading Principle
3rd trade occurred after 7pm, once the next 240 min bar began, and the Range bar had closed below the 5-day 50% level, which was my morning analysis.
short 108. 78 exit 108.43 +35 pips Exit on the R41 pip completion....
Note:- as with the SPI :- if looking to trade short term 'scalping moves' using the Pink filter, then try and exit on the 41 pip range completion, because it is rotating back into the brown filter.
The brown filter is the driving force, which means there is more change that price will have legs if price is moving away from it, as is the case with the SPI :- 87 points.
But as with the SPI:- The spiral filters should be taken in context with the overall trend, the 5-day 50% level, and the 3-day patterns.
And keep in mind the Principle of 'Open Trading' that aligns with GMT 12am.
- All Daily forex reports are written before 9.00am Sydney Time, which is approximately 3 hours before Midnight GMT
