I joined this forum last week with the aim of helping people new to Forex to understand how to read a chart and trade them. I started a thread ‘Trading the Dow’ but the lack of interest made me close it (odd as I was up 180 pips on the week despite post Brexit volatility) I’ve been a trader for 9 years and trade the Dow on a 5 min chart in the US Session. I would rather this thread was in the Analyst area but I can’t post there. I don’t normally trade the daily charts but my methodology works across all instruments and time frames.
I’m going to post Daily charts with analysis and post my trades in real time. If anyone wants to post their own charts for discussion that would be great- traders love a good chart.
I use Pitchforks, Fibonacci, trend lines. channels, chart patterns and the COT report in analysis (no lagging indicators) this is just pure price action analysis and trading. I hope people enjoy it.
The major fork(Blue) has been broken to the downside. Price has hit D the 1.217 ext of AB where AB=CD. I would expect a relief rally before further downside
Obviously Bullish, Price has hit D where AB=CD and the upper parallel of the green minor fork I would expect a retracement here to 1310-30 before a resumption of the upleg
People use words differently. I’m criticising nobody. It just seemed to me, reading the thread, that it can’t be a “lagging indicator”, if it isn’t an “indicator” in the first place. (It’s clearly “lagging”, though - not disputing that!).
Something can be “indicative” of whatever (“sentiment”, in this case?) without being “an indicator”, [I]per se[/I], as the term is normally used in forex-related conversations?
I couldnt find anything on the Daily to key off after Brexit so had to go down to the hourly. The blue fork has some validation(red arrows) I would expect GBP to hit D where AB=CD similar to EURUSD. Anyone got any charts to throw up? or any ideas or criticism. I also never considered COT as an indicator but never mind. I would use COT only before taking a position I would want to see if the Large specs are increasing or decreasing their positions and whether their positioning in the market aligns with my trade. I will pull up a COT chart on my first trade. As I’m trading Daily charts I may only get 1 or 2 trades a week which is great as I’m busy all day trading the Dow. I very much hope I can make some good friends here, help people with a little less experience, have a bit of fun and make some money.
Thing is: when commercial and speculators/fund managers position is.opposite ways, who do we pay attention to, or rather, who has the ultimate influence on price? I assume the former…
I expect price to hit D where AB=CD The above charts will be the ones I will be covering as well as EURGBP XAG and AUDNZD but there’s not much on them at the moment
