In this NZDCAD chart we illustrate why we look at range bars and why we highlight specific pip distances. When we approach trading, we like to set our trading to 400 pips per range and 100 pips per candle on the Weekly / Daily giving us the representation drawn.
At this point we are looking at a trade that is at its -30% retracement or on the illustration we see that -30% is represented by a wick. If we see a reversal, price will trend higher towards 0% reestablishing itself back into the body of the candle from this point we will look for a 50% retracement in price.
If we continue to see price trade below -30% that means that price is already trading into the next 400 pip and 100 pip range being -30% or 70% into the next 100 pip range this is an overall bearish sentiment in price.
In explaining this trading process we are looking to see a recovery and overall commit to a bullish bias on the trade.
At this point we are looking at a trade that is at its -30% retracement or on the illustration we see that -30% is represented by a wick. If we see a reversal, price will trend higher towards 0% reestablishing itself back into the body of the candle from this point we will look for a 50% retracement in price.
If we continue to see price trade below -30% that means that price is already trading into the next 400 pip and 100 pip range being -30% or 70% into the next 100 pip range this is an overall bearish sentiment in price.
In explaining this trading process we are looking to see a recovery and overall commit to a bullish bias on the trade.