Both the signals did not give a clear trading opportunity as price was stuck within a range.
1. 07/12/2011 00:00 GMT
2. 07/12/2011 10:00 GMT
“The time factor and time periods are most important in determining a change in trend because time can over balance price, and when the time is up the volume of sales will increase and force prices higher or lower” - W.D. Gann
A breakout at -2 bars and a reversal at +2 bars - Though both the breakout and the reversal fell within the +/- 2 bars condition, it was obviously not an easy one to trade.
Another positive timing. The bears started coming in 5 bars earlier but the big move started exactly on the timing bar at 6:00 GMT.
As forecast, the aussie was bullish and now showing bearish signals. I've identified another signal for today. Check out the latest post.
Two opportunities provided during the forecasted time in the H1 timeframe. Overall, on the H4 timeframe, the move resulted in a quick pullback rather than a reversal due to the strong down trend.
The indicators were suggesting a short on the M30 chart but with price resting right above the weekly and monthly fibo, any shorts taken would have hit the SL by now. A sell with a stop placed right above the Time Signal would have resulted in about -20pips.
How Yesterday's Signal Could Have Been Traded
(1) Following the bullish stochastic, a Buy would have resulted in a loss of about 15-20 pips, of what had been a pullback. (30min chart)