Alternative Technical Templates.

[Ray_1]

Originally Posted by JimmyMac

If you actually isolate & strip back much of what these guy’s post up with their charts & commentary, you’ll see that they’re constantly waiting for price to test or confirm a potential bias.

That’s kind of what you’re referring to in your post right there.

It’s all very well having your support & resistance levels plotted or your trendline, fibonacci or pivot levels annotated on your charts, but if you don’t allow price to actually prove it’s intent or test these price assistors before engaging, then you might as well not use them in the first place.

The central theme of their analysis & trade planning revolves around the process of intent & confirmation. In order for them to execute away from one of their support or resistance zones, they require price to test or confirm it’s intent. The reason they adopt that practice is to help reduce the possible occurances of false breakouts, continuations & reversals.

It doesn’t mean they’ll be totally immune from those instances, but at least they won’t be trading blind.

You can use that principle across whatever technical tools you choose to utilize.

Hi jimmy,

How many times must a s/r, trend lines fibo levels or pivot points be tested to be confirm as a potential bias?

[tonymand]

[quote=Ray_1;65495]Hi jimmy,

How many times must a s/r, trend lines fibo levels or pivot points be tested to be confirm as a potential bias?[/quote]


We all have our own ideas about this sort of thing Ray. These differences make a market. For me I am still short from the start of last week and aiming for 8100. I would need much greater evidence to go long than short if I was looking to establish a position. So a retrace back into the test area you have highlighted could be enough with a classic James type entry signal, say an IB. If we get to 8100 I will probably lighten my position but would then want something like a double bottom and divergence or a higher low to tempt me long. Remember you wont always get it right. It took 3 attempts for me to establish this short and on the strong up day a week ago I took a long position which of course was ultimately doomed. So you just keep watching and working out for yourself what sort of confirmation of intent you are looking for

[kagein]

Hi guys, would i be right in assuming that bulls will only start to get excited about the cable once the 1.8900 zone is breached?

[JimmyMac]

Originally Posted by Ray_1

Hi jimmy,

How many times must a s/r, trend lines fibo levels or pivot points be tested to be confirm as a potential bias?

As Tony points out, there's no real concrete rule. Once will do for me if I can load up at an appropriately safe level. I know the same goes for Tessa, especially on the smaller timeframes.

It’s all about the risk.

If the price action signals me in at a pullback level via one of my favorite set ups, around a previous zone of support & resistance, then I’ll climb all over it.

I like breakouts from ranges. Overnight (Asian) or intra-session consolidation ranges, previous day high-low points etc will perk my interest if I see a breakout & pullback to test the intent.

If price pulls back to check the top (or bottom) vicinity of a range b/o & I get a doji, spinning top or aggressive bull-bear candle with adequate stop placement above-below my potential entry – then I’m off to the races.

Of course it goes without saying that it has to be in tandem with the overall trend if one exists, but that’s all I require to get me active.

You’ll need to get accustomed to your own personal risk profile & trade tolerances first before settling into a consistent basis of execution, but that’s what demo platforms are for.

If you think about what’s usually happening when prices kick back to check a prev breakout zone, then it’ll add confidence to your potential set-up criteria. But you can use the support & resistance guides as a base for nurturing this type of trade execution.

[JimmyMac]

Originally Posted by kagein

Hi guys, would i be right in assuming that bulls will only start to get excited about the cable once the 1.8900 zone is breached?

That's certainly a level which will hold some intent kagein. A lot will depend on how far south this things decides to go.

After that, players will be looking for a basing or reaction low to work off. They'll start to feed into longs once they obtain some confirmation that a potential bottom or base has begun to bed in.

You can get a clearer view of that type of action via your 60 & 240 minute timeframes. That's where it'll begin to show.

Higher highs & lows + any solid range behavior holding up to scrutiny will encourage feeder (compound) stakes along the way.

[Ray_1]

Hi tony, if you dun mind can post a chart on your trade (describe earlier) which you are still short in. If you had posted it earlier in this thread can tell me which post is that? Can you also tell us what prompt you to continue with this trade for so long? Sorry for the inconvenience caused.

[zenocorp]

thanks ray for inviting me to this thread. it is a great thread! here are some of my analysis for the GBP/USD pair. any comments and critics are welcome.

[zenocorp]

the forum does not let me post 3 big charts, dun know why..so i have to make a new post.

[kagein]

Hi tony, if you dun mind can post a chart on your trade (describe earlier) which you are still short in. If you had posted it earlier in this thread can tell me which post is that? Can you also tell us what prompt you to continue with this trade for so long? Sorry for the inconvenience caused.

Hi Ray,

Tony posted the trade he took here Alternative Technical Templates.

To answer the second part of your question, i would assume he still has it open because its making him money and theres potential for it to slip lower.

[JimmyMac]

Zenocorp,

Nice to have your contribution on the thread, & please continue to participate at your convenience, but could I ask please if you would either reduce the size of your charts when composing, or use the thumbnail attachment facility within the reply section of the post.

It’s rather frustrating for observers when they have to toggle from left to right to read commentary/chart content.

Thank you.