Pound Inggris / Dollar ASEdukasi
Navigating The Market : Simplifed = Friday/Monday relationship
This is not a trading strategy nor claiming this concept happens 100% of the time, but this is a repetitive pattern and I personally believe it could help you to navigate the market (particularly if you are an intraday trader) more efficiently.
I generally would see this in 1-Hour timeframe but for the sake of being able to show you with more examples in one post, I choose D1 timeframe for this post. When price breaks and close above Friday high on a Monday, more often than not, the price would eventually reverse downwards within 18-24 hours. Vice versa for a close below Friday low (on a Monday)
Why I believe this phenomenon is real and tangible is because Friday or Monday normally a day where the Banks (NY session) attempt to clear their books. In order to do this, sometimes they need liquidity to offload their position, they would do stop hunts if there is a need to do so.
Hence I've conceptualised this Friday/Monday relationship into my way of analyzing the intraday moves especially on a Mondays. By default, any breakout from the Friday high or low, I would consider it as a stop hunt/fake breakout. Of course, there be a week where a breakout from the Friday started a huge trend that lasts weeks, but that is an outlier. I do not care about outliers, as a trader I will try to profit from what is repetitive, and this concept is very repetitive.
This is just one of three "day-to-day relationships" that I have conceptualised to make me reading the market a lot easier. The other two are Mon - Tue/Wed relationship,andTue/Wed to Thu/Fri relationships that I have conceptualised. Tell me what you all think,
I generally would see this in 1-Hour timeframe but for the sake of being able to show you with more examples in one post, I choose D1 timeframe for this post. When price breaks and close above Friday high on a Monday, more often than not, the price would eventually reverse downwards within 18-24 hours. Vice versa for a close below Friday low (on a Monday)
Why I believe this phenomenon is real and tangible is because Friday or Monday normally a day where the Banks (NY session) attempt to clear their books. In order to do this, sometimes they need liquidity to offload their position, they would do stop hunts if there is a need to do so.
Hence I've conceptualised this Friday/Monday relationship into my way of analyzing the intraday moves especially on a Mondays. By default, any breakout from the Friday high or low, I would consider it as a stop hunt/fake breakout. Of course, there be a week where a breakout from the Friday started a huge trend that lasts weeks, but that is an outlier. I do not care about outliers, as a trader I will try to profit from what is repetitive, and this concept is very repetitive.
This is just one of three "day-to-day relationships" that I have conceptualised to make me reading the market a lot easier. The other two are Mon - Tue/Wed relationship,andTue/Wed to Thu/Fri relationships that I have conceptualised. Tell me what you all think,
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