The key to knowing where a Floor is, Or isnt. Is in watching the MONTH CANDLE COLOUR.
New Month candle starting on monday. While its red, stay off it, if its green stay on it.
If the Candle goes green and looks like getting greener, thats Good.
If the candle turns red and looks like getting redder, then thats bad.
Its a very very simple way of clearing perspective.
In reality, I have in the past done some Proper Backtest scans on many FX charts over decades of data. We had a Buy and sell trigger. But we also tested the same scan with 2 variables,
One, only take the trigger to trade in the direction of the current Month candle.
2nd, to only take the trades in the opposing direction of the current month candle.
The data showed we were positive returns over all, and positive returns with month candle direction. But we had Neutral returns net zero, when only trading opposite to current month candle direction.
The Results of many scans and months of testing with a programmer on FX chart data.
The moral to the story, only consider buys with a green month candle in play. Only consider sells/shorts with a red month candle in play.
Re KDR Chart, page-3557
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