Hey guys. I’m a newbie but I think I may have this one… hope I’m right…
Well, it’s very subjective. It does have a semblance though, but I wouldn’t use this alone as a reason to get into a trade. You ought to look for reasons from multiple angles (using S/R, pivot points, hi-lo, Fibs, fundy background, etc) to decide to enter a trade or not.
As a rule of thumb, I only enter a trade if the number reasons to go for a trade is more than 2 times the reason not to. Unless it’s a very strong reason not to like a big economic report which may screw technicals altogether, rendering it useless.
Gotcha. This was just a setup I saw n thought I would post it ta see tha outcome. Some of the other lines are s/r lines and trendlines. I’m actually practicing my naked chart reading skills so there isn’t too much else goin’ on. Anyway, thanks for tha reply.
So… here’s the outcome. I would say in this case I was right. Didn’t get ta play it tho; I was out when it broke the neckline. To answer tha previous post, I saw engulfing candles on the head and right shoulder of tha formation which kinda supported my reversal theory.
How about this one at 1.3675 ?
Sorry about the chart I know its a mess I have been experimenting to do with an EA I am trying to code but anyway see the old trendline at the bottom I drew that a week ago and never deleted it I saw it again just now when the price was right on it so I decided to throw in a buy order and see how it stands up
well that should teach me to delete my old trendlines dammit
That looks like MT4 there. If it is, no sense missing opps, if you’re not going to be there, set up a pending order, complete with stops, and limits.
It’s kinda fun to get home, and see your order did it all by itself:)
Hey now sweat. I enjoy reading them naked too =P, as yet, I am no big fan of indicators. I do use the stochastic but only to look for strong signals like divergence.
lol ur chart’s not that bad SDC. Def looks like a steady trend. I would await confirmation lookin’ at tha chart tho, ur macd is still under. U woulda lost big time! Master Tang, I DEF should have done that!! Being a noob, I’m playing my chart reading VERY conservatively. Looking at tha chart this morning… sheesh… so many pips lost!! (not taken advantage of) It moved at least 1000 points in my direction…
Medic, I just recently learned about divergence. Haven’t gotten that used ta looking for them but from what I hear they’re very strong signals. I will be incorporating it into my trading plan.
Looks like your prophecies came through. Nice
Your right I would have lol, I didnt let that one run though I closed it out when it broke that trendline, cost me 5 dollars lol, you know what though ? I believe on a different day that same trade would probably made a profit there was some support there I watched the downtrend stall and hover at that level for a while before it finaly broke through.
I dont often do spur of the moment trades like that, every now and then I’ll throw one in sometimes they pay off sometimes they dont lol. My main order was actually the buy limit order below that at 1.3550 based on previous support, I’ll be watching that carefully too though, I’m not entirely convinced its a good trade so I kept my lot size low for that one.
I have a buy goin’ at 1.36100. I got my halfway t/p so now I’m pretty much ridin’ fer free. It may have been a rash move, but tha pair is reaching tha lowest lows of recent times. Plus it’s already broken 2 of my support lines and I’m not so sure it’ll break another. That, and I chose that spot because its near an older support line. I’m still workin’ my trading style out so excuse me if my decisions don’t quite make sense. As a side note; I hear that the euro got sum bad news earlier which may be why it dropped tha way it did… lucky coincidence.
You can see I was 20 pips late getting mine in I went to make some coffee came back and it had already bounced off my trendline I had this one nailed but I was watching for 2 hours to see if it would break my trendline or bounce off it and fall, I turned my back for a few minutes and missed it happen I’m hoping maybe it will hit to my long order at 1.3550
if your interested you can see my green entry/red exit points for the day I didnt get all of them but I did get the middle one at 85 pips earlier and a few of the smaller ones total about 140.
I see you are into catching reversals. personally I have always failed trying to do that. These days I prefer to use fibs and follow trend.
Yes, well my original intention was not really concentrating on reversals I was trying to improve my entry points and gradually I got to where I was hitting the reversals pretty good when theres wasnt a whole lot of price movement so I stayed with it. you can see I mainly use the RSI on 15minute charts to help me with that, mainly going with my 200EMA (the purple line) for the general trend direction and watching my trendlines I started to use fib lines a while back but my problem with them was I kept picking the wrong fib line I have to say after following your own thread you are a lot better at reading fibs than I have been.
EDIT: Actually that screen capture is a good example of my system in a perfect setup situation, because as you can see the price was at my trendline while the purple 200EMA was downwards and the macd histogram and its indicator both crossed the zero line. At the same time the RSI was over the 75% level the next thing to happen was the parabolic SAR placed a dot over the candle at the trendline to confirm it was probably a good trade and the bollinger bands started to open up and the red moving average can be seen to take a downwards turn at the same time.
U were sooo right SDC!! My buy order worked for me tho. My EA did sumn funny when the retracement happened so I got stopped out at my half profit mark again for a total of 15 pips on tha full position. Now I’m eyeballin’ that 1.3550 region. Let’s hope ur right… I have a good feelin’ u are. I’m also very interested in ur approach. A little heavier use of indicators than I would like but if it works, it works. Ur tha first person I’ve heard that makes use of such a low time frame. Any tips on how ta better use them?