My free lunch at your expense

Libera apud te sumptu. This could be a banker’s creed or motto. While this might not reflect the thinking of everyone working in the banking and finance industry (and it is definitely socially unacceptable to say out loud), I am also entitled to my own belief. Something I have come to observe and find no other way to explain.

H4 chart of EURUSD showing price action over last 12 weeks
H4 chart of EURUSD showing price action over last 12 weeks

Note this H4 chart of EURUSD showing the last 12 weeks of price action.

If:

  1. price expansion i.e. movement in a particular direction is an indication of trend so that many traders might trade in the direction of an expansion or breakout and
  2. highs and lows are resistance and support levels to place SL,

then this chart is absolute proof that market is full of bullshit (ahem noise, wash n rinse) that is meant to:

  1. confound us,
  2. send a wrong signal and
  3. stop us out.

 

Since we know that wash n rinse is such a common phenomenon fully observed here and in the chart above, then trading with MT4 Autobox v2 indicator (looks slightly different from version seen here) with a view to spot a wash n rinse signal is the way to go.


Leave Your Comments

Loading Facebook Comments ...

Leave a Reply