Updated on June, 12th, 2015 – I do not use master candles anymore, as they do not work in current market conditions. You can read more about this here.
Check out this master candle on GBP/JPY
Now check out the same master candle on GBP/USD and GBP/CHF:
Now take a look at the same master candle already broken on the long side on EUR/USD and EUR/JPY:
All these master candles are the same and two have broken to the long side. This is an indication that the GBP/JPY might break long and if it does it might make for a good trade. The same master candle is spanning across several pairs and some of them have broken. If the others break in the same direction GBP/JPY should make for a good trade.
I am still cautious with these kinds of trades so I wont enter a real postion. I thought I would give you guys a heads up on it though.