Back Testing CPI

Back Testing CPILeçon 4 sur 115 min de lecture

The release candle

Comparing the size of the release candle with the size of the setup that followed it, and what that arithmetic says about trading release mornings.

This is the reason behind the news rule, stated as a measurement rather than as caution.

Measure the release candle

The 5 minute candle that carried the release ran from 2,455 to 2,477. Twenty two dollars, in five minutes.

The 5 minute candles before it covered about two dollars each. Module 29 used that same figure when you wrote your own threshold for ending a day.

One candle covered eleven times what the surrounding candles were covering.

Measure the setup

Now the trade from the last lesson. Entry 2,471, stop 2,466, first mark 2,477.

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Le cours est gratuit. Le compte sert seulement à garder ta place et à te prévenir quand de nouvelles leçons arrivent.