You need two additional indicators on your chart. You need a Average Daily Range indicator to tell you what the range should normally be and how much it has moved that day (top centre on my charts). You also need a indicator to tell you how far from the low of the day we are and how far from the high of the day we are (top right hand corner).
Lets look at GBPJPY. They normally like to move this pair about 150 pips a day. By 8pm it had only moved 50 pips so the chances it was going to move at least another 50 -60 pips during the London session was very high. Last night it was only moving in one direction UP. The Daily was Bullish.
Therefore it was a safe bet to take a LONG - UNTIL that they would SPIKE it at a turning point before dropping it again down again. Its all about Targets, we have to try and guess which Target they are hunting and follow them.
We do this on the 1 minute chart. The Strategy we are Trading here follows there moves AFTER they have turned the market. So I trade with them at the turn of the Spike on the 1 minute chart and at the Candle Close of the higher time frames with this strategy. This is why you MUST trade the London session, they give us their true INTENT on this session. Trading the Asia session is just guess work.
Lets look at today's trading. the last two days this pair has only moved around 70% of its normal range. That means the Big Players are not getting their full profits. Therefore tonight I am guessing they will perhaps either SHOOT it up 180 pips or SHOOT it down 180 pips to get their pay packet this week. Watch around 8pm - 9pm tonight, we will see their INTEND then.
