'Market and Human' Psychology perspectives with tips on how to avoid common mistakes by 
I like to count waves (Elliott) to get a sense of the general direction and how far a move should go. However I usually don’t enter a trade unless I see a Candle or pattern of several Candles that potentially shows a reversal or continuation point.
I expect that some sort of bottom is forming on the EUR/USD and GBP/USD and reversals are due on many pairs. However this change may take days or weeks yet to unfold. I will hold off entering on a buy until the market shows me that a rejection has occurred at a price point. These Candles and Candle patterns come in many forms. And over the next few post I will place snapshots of such patterns as I believe when we see a turn on most of the pairs it may be quite dramatic.
For now, I will draw your attention to a candle on the GBP/USD Daily chart. This is a type of Doji (small body). And of all the candles patterns identified, this one seems not to have a specific name. So I am calling this one a Beacon Candle. What is interesting about this type of candle is it has identified two very strong rejection points in a single day. What this does for us is shows what price point traders were not willing to go beyond. The next time we break either the upper or lower point of this candle, it is likely we will see a break-out.
Keep an eye on these levels. They will surely become important in the next few days/weeks.
Cheers
i am really happy to read this post well hope to read more from you ….and my eye is on this one .
Indeed Henry. These levels will come back into play. The one I am watching cautiously is just below $1.75. let’s see if we break lower there or if a turn takes place.
I would suggest waiting for a large (200 pips+) engulfing candle in the opposite direction before considering buying.