Let me ask you something, how often do you think the EUR/USD gets away from its speed line by more than 47 pips?
I’d say not very often, and it is even more rare that it does so with freshly consolidated overbought / oversold.
Can we agree, that these entries are perfect for a discharge on the speed line?
I may just have found the best scalping idea that could even be automated. It is semi automatic as it is, I enter the trade with the right stop loss code and my Trail Stop routine relentlessly starts adjusting the target 2-pips beyond the current E-16 HL2 value (0.5 for longs, 5 for shorts).
No, those below did not occur with a fresh overbought, this was a re-entry.
Now, quick remarks about the mean reversion. The idea is always the same, only the MA changes.
I did get 1 like for it, nothing to complain about. The fact that the low was 1.2078 was just a lucky coincidence with the 3-day ATR measured from the consolidation level.
Today’s new invention the wick highlights (see above) brought no appreciation although I was even considering to elaborate on how I foresaw the mean reversion playing out.
This was exactly what I had in mind. A normal mean reversion has 2-3 days to play out. The move from the dashed line (4x stretch from the mean) to the grass green (1x stretch from the mean) was 3x fluctuation maximum. You can figure the rest.
People cannot appreciate a good thing even if it is in front of their nose. Excuse my frustration.