Amongst others I use a hi/lo 2 Regression line that reverts to hi/lo priceline on my platform to connect up the tops/ bottoms of the candles/ bars. Generally speaking PA moves in zigzags on all TF’s (not the indicator) so PA had hit a low on the 12h & daily TF and formed a low ‘V’ i.e. the low for that particular move on EU. Went long and targeted resistance, the congested area on the 4h TF. As it happened, PA went through this but retraced forming an inverted ‘V’ at the high point signalling a short. Take a look at all TF’s using a hi/lo Regression line and you’ll see what I mean by ‘V’ for lows and inverted ‘V’ for highs.
EDIT: For the bigger moves I find the ‘V’ and inverted ‘V’ particulary good off 12h, day, week and monthly TF.
Hi R Carter,
Thank you.It seems we trade the same system but with different approach.I trade mainly Price Action candles.No indicators at all.I just use trendlines and sometimes i may add US dollar index below my 4hr time frame.It works well for me .I just trade within the suport and resistance.
Now,when PA forms “M” ,I can draw a line M and if candles forms at the upper side of the upper, it signals buy pressure and below M signals sell pressure.The same cam be said of W as well when formed in the PA.i have been doing it pretty well.
Take a look at 4hr USDCHF now, it has formed M. i will wait to see the direction of the PA.I dont tell where PA will go.I just follow because i have no control over it.
I dont have regression line in my chat(MT4).I will like to try your system and see what happens.
Greetings,
Roberts.
Yes.I saw it.It is just that i dont trade CHF/JPY because the pip is not that much.A whole day of CHF/JPY can net 75 while USDCHF can net 150.There is inverse relationtion between USDCHF and CHF/JPY.I just only use the analysis of CHF/JPY to trade USDCHF. But i am always open to learn from different point of views.
Hi SanMiguel,
I apologise that i response late.I barely post to the forum.I am pretty confidence about these chart formations.They are reliable to trade.It is just that it takes a considerable amount of time to master them.I learned it in London,UK whick i believe is the world headquaters of forex.
Take a look at EURUSD Daily chart today,a trendline on top of that candlestick is a clear indicator that this pair is about to fall for real.
I trade naked candlesticks along with S/R and trendline.Chart formations are just S/R in vertical forms.
Greetings.
I’m thinking EU has hit the top on the 4h (02/02/11). Classic ‘dog leg’ move from the low of 1.3560 up to 1.3738… 170 pips. Pull back to 1.3660. Then second move up to 1.3840… 179 pips (pips measurements taken off 4h TF so may be out a tad).
I’m short for a longer trade at 1.3827 into Asian. Here’s hoping.
My best guess is the market makers right now will be feeding the retail short TF traders into longs and taking out an area of retail short side stops. Then Bang a break out south.
If you’re so desperate to short the euro why not simply take it on via the pound?
That pair has quite clearly offered a series lower highs (on the hourlies) which is universally considered to be the first signs of a possible exhaustion, be it temporary or not.
Wouldn’t that make the most obvious sense?
Eventually when the eurusd is good & ready to begin showing signs of slowing the upside momentum you can then step in & safely take on the short.
Surely that would be preferable to falling into the novices trap of attempting to picks tops & bottoms, worrying about why & how it’s continuing to climb steadily northwards & who is trying to feed who into what?
Because its not the Euro. As I right this at 08:00 GMT, GU’s now -46 pips v EU -8.5 pips from last nights position. ‘Desperate’… odd choice of word? The reason I’m shorting EU is explained in my previous post.
LOL
