Great traders are able to obtain incredible results that hardly a man without experience can emulate. The market presents almost always similar features and the price moves in directions easy to verify, except for rare occasions.
The first thing to do is to check the maximum and minimum points achieved by the price in relation to a particular asset, to make it just observe the graph and draw horizontal lines that connect one maximum or minimum point obtained up to the present time to a hypothetical point that it will form in future.
When the price reaches the straight-line, it means that investors are in front of a dilemma: exceed the maximum or minimum or test the point and change direction.
Usually, technically, it's preferable follow the main trend, but that fact remains that we can safely invest, in a certain time frame, in offbeat, using the daily price movements.
The graph you see describes the price movement of the pound / dollar with H1 time frame, each session, therefore, has a duration of 60 minutes. The formation that concerns us is the one shown. It's a Pin candle from exhaustion that is formed on a very important resistance intra-day.
TIPS FOR TRADING: you can take advantage of these special formations watching the market daily, in cases like this the trend reversal is almost certain, therefore, we can safely invest even more then 5% of the capital, of course, defining a stop loss that allows us to avoid considerable loss.
How to get more informations on your chart