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Re: Fractal Order Blocks Open Secret System

josi, Thu May 05, 2022 4:03 pm

Mustafa wrote: Thu May 05, 2022 2:35 pm
a) MAs don't work during ranges (depending on the TF on which they occur, they can be pretty wide); see: random walk....
b) directional bias doesn't mean that price only moves down once it breaks below (or up once it breaks above); instead it gives you a hint in which direction (up or down) you should be looking for trades (especially after touch and rejection)
c) as MAs give you an average of price development of the past they - to put it extremely simple - basically tell you at what point you could expect an equilibrium between buyers & sellers
d) whenever price moves away from this equilibrium it will later come back to it (either to retest or break through it): mean reversion...

Therefore:
price moving back to MAs (to retest or break through) at some point must be expected and proves nothing by itself (except that the ratio between buyers & sellers has changed)
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