The regularities of price movements: Part 1. Price orientation - page 13

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5m EUR/USD

You may not see any inside bars on the bars of the higher TF although the formation does exist.

 

Ulad, that's MF's interpretation of you

 
ULAD:

5m EUR/USD

You may not see any inside bars on the bars of the higher TF although the formation does exist.

It looks a lot like a resonant swing of an oscillating circuit. If I were a central banker, I would collect counterparty positions in this way.) And notice, in the end, the swingman (if there is one) is on the plus side, and the price is still there. Hocus-pocus.
 
Absolutely right. The losses on these kinds of tricks are pretty damn good.
 
C-4:
So the observed effect is caused by asymmetry between the rise and fall of volatility. But shouldn't it be the other way round? A momentary rise in volatility is supposed to make outside bars more likely? I.e., the bar which is 5 times larger is more likely to break through both extremums of the previous one, but the ox declines not so quickly following it and therefore it has a better chance to break out of the range of the previous one.

Yes, but the outside bars will be smaller (usually one in which the ox has risen sharply), and the inside bars are more frequent, because they can appear at any moment of volatility fall, which takes quite a long time. I.e. external bars appear when the ox is rising and internal bars appear when the ox is falling.
 

Evra. Good formation, familiar. Good work, well done:



 
DmitriyN:

Evra. Good formation, familiar. Good work, well done:

Same on the pound this morning. +++
 
C-4:

Unfortunately ...

That's not bad.
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