Shandy Question


Here is a question and chart posted by Shandy on the Forex factory 10XROI thread  I have posted my chart and answer to his question underneath.

“Ok so attempt number 2 here in identifying a push-pull formation – CADJPY Daily, candles marked as 1,2,3 with 3 being the red candle. Or would this be a 1,2,3,4 formation, with the candle 1 being the large bull candle to the left of where I have number 1 now?

And if this is a valid formation, where would the “trigger” line be placed?”

shandy_3.1

Here is my chart with the moving averages and trend line break which helps to determine momentum, you will notice there was a trade prior to the one Shandy is pointing out which because it was closer to the source of momentum was a better trade.  However back to the candle pattern recognition.  Candle 1 is the pin after the pullback,candle 2 is always the Push candle and in this instance the pull back to the close of Candle 1 was at the low of candle three.  I have marked the push-pull level in green.  Upcoming resistance is the red dashed line.

shandy_3

 

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