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pennies2007

07/29/13 9:35 AM

#120505 RE: Qui-Gon Kagi #120503

During a downtrend, the TDI points down at a sharp angle just like price action. But when price action hits a strong support area, the candles reverse and begin to move back up. The TDI will do the same. Instead of pointing down, the TDI will begin to curl around off the trendline and move up along with the price action. The key though is waiting for the TDI to begin that move back up BEFORE we take the long position.

Here's a close up of the same hourly USD DKK chart. The curl is nothing more than a reversal movement in the opposite direction and it dictates which way the price wants to go. The curl began to appear right after that small green hourly hammer candle appeared. But that small hammer candle had to close before the TDI curl appeared on the chart. That's the confirmation we have to wait for.