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Originally Posted by BluePearl
question: on a bullish candle, for example, do you only look to buy when the 5-min bar closes above yesterday's daily high? or do you also look to sell if the 5-min bar closes below yesterday's daily open? only take one order per day.
thanks.
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Very good question.
If on the previous candle is a bullish candlestick, a buy order would be a high probability trade although I don't discount the sell order can be placed as well. You may opt to leave out the opposite order if not comfortable. So far, using my entry and exit strategy, it can still applies to buy or sell order regardless of the previous candle.
However, I've not yet found a consistent way to counter Doji candlestick because the currency pairs I've chosen rarely have Dojis. At times when there is Doji, instead of looking at the open as Support or Resistance, I revert back to relying on the High and Low of previous day.