The image appears clear enough to read.
If you want to draw a trendline over that large a span of time, look at post #216’s chart, by Melchizedek. He drew it correctly.
I personally draw much shorter lines, notice what the date is on the high I drew my trendline on my chart, Jan 30th. Your high is way back in December. I think you’ll find entries to be more accurate, if you make trendlines on more recent highs\lows.
chartc.bmp (1.01 MB)
Thanks for the feedback. I’ll keep practicing =)
Also, we’re at a resistance point and the upward trend has stalled a little. The next resistance point I see is around 1.90. Any thoughts on continuance or perhaps a retracement first?
Well, i was in from the moment that the double bottom was starting to look like a double bottom and boy did it pay off 
pipcompounder - can you show me how you’d draw a new trend line? From what I see on the small level, it’s already broken the up trend (on the 4 hr chart) and is now heading down. I’ve estimated my trend line using the two lows of the up candles. Also, the orange lines are my own resistance points.
I wonder if its going to break through 1.8800
I am new to this thread.
Interesting concept.
Dear Pipcompounder, one doubt …
Is the breakout on given 4hour chart is valid ?
I’m guessing yes. If goes to a .382 retracement that puts it at 1.8755. It’s hit that mark a few times on it’s way down (retraced back up .382 before dropping again). It’s been down the last 14 hours (with 3 up candles in that period - on the hour chart). My hunch is that it’ll retrace down and bounce off the 1.8750-1.8775 area. I’m currently in it short with a TP at 1.8775. This also coincides with the Macfibo strategy (found elsewhere in the forum).
Your trenline is very slope . Careful
I am keeping the buy open…I would consider it a little early to draw a trendline now.
If you were to draw one to play the market tight it would look like this:
chartd.bmp (791 KB)
The problem is a retracement can be very quick, and hard to chart to anticipate another change in direction. It’s better to just get entries that are very close to the extreme in price (which means recently the lowest low), and when the price bounces up like this, you have 200 pips of comfortable cushion to let the price structure form on the way up. Once we get some fractals (ends of swings of price, which you can see using a fractal indicator), then you can use those to draw trendlines. Where price is right now may continue to bounce around the 1.89000 level, making you have to redraw the trendline again, flatter.
Well, sometimes, you learn =)
…and patience is one of the hardest things to learn.
especially with the appeal of scalping for quick moves, which you can do, but this idea is to sit back a bit and let the market pay you for patience and a little aquired skill from practicing…
I missed this one this week as I was in the simulator ( boo)! Managed to pick 100 pips up from the EUR/USD bearish engulfing off the highs, so not a bad week!
Looking at GBP/NZD the pound hasn’t got a great deal to keep this pair travelling vertically! A pullback is possible and I am eyeing the 850 or the 750 level for a price action setup… Should there be a pull back. Text book double bottom does indicate a possible significant bottom with plenty of upside to come!
apparently at 1.8950. =(
Wish I would have known the BOE was making a statement. it wasn’t listed on the forexfactory upcoming news.
Apparently they believe the costs of living will keep rising for the next two years: Bank of England to warn living costs ‘will keep soaring for two years’ @ Forex Factory
pipcompounder - even though this appears to be news related, is it still considered a trend reversal?
I would say using the trendline I placed last week underneath getting broken was a good time to take profits, and sell for a cautious short. It seems the price is stuck in this range under 1.9000.
If you sold when this trendline broke, you are in a good position to hold it to see what happens. If you got out, but not back in the market at all, then I would stand back, let this downturn retrace, see if price resumes going down, if so draw a downward trendline and setup to buy the break of that.
I would wait on this if you didn’t sell at the last trend break, until the downward trendline is broken. This last retracement you placed the buy stop order is a good place to connect a trendline, like this:
chartE.bmp (791 KB)
Thanks Pipcompounder. Now the concept is more clear. My buy stop was not triggered and the price is going down like a rocket. My order is cancelled.
just waiting the next candle or so to see if we’re going up
