Quote:
Originally Posted by mp6140
Shane, laddie !
years ago there was a tv campaign using as its plot line "its not nice to fool mother nature !"
While certainly not a "mother" anything (hmmmm -- well actually i cant truly say that !", i am more a dutch uncle, and you will find that many a dutch uncle maintains a database of hundreds of indicators and chart overlays - - - -
its not nice to try to fool uncle mikey !
LOL
mp
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From reading your posts I would venture to say that only a fool would try to fool uncle mikey...and although I am a fool (or at least that's what my fool buddies tell me) - It is as I stated in my last post, they were drawn manually.
An explanation:
I see price peak and reverse. I plot a dashed line at that peak.
I see price come back up and break through the dashed line - eventually reaching a second higher peak. I plot another dashed line at the higher peak.
I see the price drop back toward the first dashed line. If I were trading, I would look at the LRC and if the price was near the bottom of the channel I would place a small long trade at the dashed line.
With this first trade in place I would then drop to a quicker TF and enter the rest of the trade after the bottom had formed and price had begun to move back up. If the bottom occurrs within a few pips of my line (which it frequently does), I make the line solid and plot an arrow to show roughly the area where my trades would have been placed.
Inititially this chart was done up to send in an email to my good ole Dad to demonstrate the power of support & resistance and one way to trade it. That is why I added in the shaded ellipses - purely just to highlight the peaks and bottoms.
This is pretty much the meat and potatoes of the trading system I am constructing. I am still brewing the gravy (deciding on stops and profit levels), but when I have it 'ready to serve' I will inevitably make my own custom indicator to do all of the plotting automatically.
When this happens, I will dish it up for you to taste test if you like. (You aren't a vegetarian are you?).
happy trading