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[QUOTE="Nigel Price, post: 48248, member: 25485"]
So if we were thinking of trading USD/JPY according the PAST principles this week how would we approach it?

The weekly chart is below, including the latest week's candle.

In the PAST Strategy, we do not treat a bearish reversal signal candle as being negated until we see a close above its open price (or in the case of a long wick candle, the high of the candle). So in the current case, the bears still have control of the market. If we wanted to, we could still be looking for opportunities to short.

Obviously the fact that the bulls can push right up through the last bear candle and close quite high is a cause for concern; it would be far more preferable that the bears managed to push price down convincingly, but that hasn't occurred on this occasion. We must trade what the market is doing, not what we would like it to be doing.

So we are left with 3 choices for the coming week:

1. continue to trade this set up and acknowledge the fact that it is perhaps not as strong as we would like;

2. look for another more convincing reversal signal; or

3. stand aside for the coming week
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