Here's another great example. Because the EUR/USD trend is up on all time frames - Intraday, Daily and Weekly, we look to trade in the direction of the UPTREND on counter trend down moves. We use the 4 Hour Stat Low as an excellent place to buy because based on the last 20 days, statistically the market doesn't go down more than this during this 4 hour time frame.

As you can see from this example it finds an excellent buy at 1.3402 and the market goes up 50 pips! The market comes back down and you could also consider buying near the 4 hour statistical low at 1.3425. The market then goes up about 12 pips.

This tool is so incredibly useful for traders as it also gives you signs that the uptrend may be slowing. Notice during the up move from 8am EST till 11:30am the market isn't able to move an AVERAGE amount. That is a big clue that the strength of the uptrend is weakening. Because of this you are not likely to make more than a scalpers profit on the second buy signal! Aggressive traders may consider shorting near the 4 hour stat high at 1.3440 knowing that the uptrend is likely to be over.



Please view our Hypothetical Results Disclosure and LeverageFX Disclosures