Interesting idea (picked up from Stacey Burke Trading) that for EOD traders each calendar month can be viewed as a separate forex market cycle. This is because of the focus on monthly activity and performance of the major players in the market.
In tactical terms, the HL range of the first trading day of the month has disproportionate chart significance - a break of either H or L will usually set that market's direction for the next 3-10 days. Also, a false break of H or L which reverses within a few days usually leads to a highly impulsive move through the other extreme of the range.
Seems a rational principle, and the TA seems to corroborate it.
What do people think?
In tactical terms, the HL range of the first trading day of the month has disproportionate chart significance - a break of either H or L will usually set that market's direction for the next 3-10 days. Also, a false break of H or L which reverses within a few days usually leads to a highly impulsive move through the other extreme of the range.
Seems a rational principle, and the TA seems to corroborate it.
What do people think?
Monthly market cycles
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