Market develops in FRACTALS.
Understanding how each timeframe is developing is important in timing our trade entries. When we decide to take any trade, we now have a better understanding and expectation of our trades.
Practical Exercise
1) Find an example where the two timeframes' bias are aligned.
2) Find another example where the two timeframes' bias are...
STAGE 1:
THE BULLISH IMPULSE LEG
A bullish impulse leg is a strong move in price action to the upside.
The impulse leg can be a mixture of bullish and bearish candles, but must have a bullish overall direction.
The start of the impulse leg should be marked as X and the top of the impulse leg should be marked as A.
STAGE 2:
B LEG RETRACEMENT
Now that...