The first pair that moved away from the group/block of either buy pairs or sell pairs, is known as tandem pair or attacking pair. trader101 suggested the market direction is confirmed once this pair reaches and dislocate the anchor (furthest location/pair of each block).
This is half truth.
It takes a lot of strength for the attacking pair to reach and dislocate anchor. The market may have exhausted by then. Also, we will see less meat too. I have experienced failed reversal at the very moment the anchor has dislocated. Since the market has moved towards a direction for some time, when a failed reversal happens, it will be quick and strong.
Most likely the rebound will hits our cut loss limits of 560pips.
That's market. For that, T101 basket system works with 14 pairs to reduce portfolio risk.