Hi all, I just want to know if I drew the today’s correct trend lines on the cable.
Thanks! 
That’s the way I drew mine. made 94 pips today even with a late entry. .
Nice to hear that. I guess I’m not that lost after all. 
Hi,
Please correct me if i am wrong. The doji candle (0300 London)that you used to connect swing lows seems to be from today and not yesterday.
Regards,
Muthu.
You’re right, I guess my swing lows weren’t within the five candles. Bad move if the movement was going to be to the downside. :rolleyes:
…Mhmmm. :D:D:D
This is how my chart looked. Feel free to correct. The candle on the right side that you connected for the swing low is actually the break out candle that we look to trade.
Regards,
Muthu.
**** I know i have to look for a recent swing high and low, but to me only these points looked like genuine swings, i may be wrong or right who knows****
I thought all trend lines were supposed to be drawn [B]within[/B] the five candles. I’ve seen different examples drawing trenlines from higher/lower highs/lows, but I think those are discretionary desitions different from this method, or am I missing somethign?
Lets see what the other experienced people of this thread has to say on this so we get a better idea.
Regards,
Muthu.
You pick the swing high & low from the recent day(s) and connect those into the 5 candle swing high and low…if that makes sense.
You must take the overall trendlines into consideration as well as support and resistance lines.
Which is what i believe i did and yes it makes sense.
Regards,
Muthu.
Ok so in this case did we have a short fakeout before going long?
Yes, as per your chart, there was a fakeout caused by news around 0930 local (1.5hrs after London open) and then a break north.
You could have used that fakeout as a trendline test for a possible short that never came but that is a conservative way to trade this method.
Again, we don;t know whether the breakout will happen at Frankfurt open, London open, or after.
This has the trendline drawn on the 0900 local candle. London opens at 0800 local.
…and even earlier if you want a post Frankfurt breakout.
Ok thanks a lot.
IMO, drawing trend lines is a lot like making love… it’s more art than science and you can never get too much practice…
These days often more exciting 
See post #104 page 11.
Hi Guys,
I’d like to attempt to clear up a few things here … it seems that in this chart the short entry (which would have been stopped out) is NOT a valid entry. The reason is that you’ve drawn in the lower trendline simply because its the 5th candle, but did not validate it as a swing low! A valid swing low needs to be vaildated by a higher high and higher low either side (which in essence does not occur until the 6th candle … so not sure whether the rules really allow us to use that one or not, ie. might be a [U]no[/U] trade day).
I second an earlier post re timezone confusion; you guys are going crazy with what essentially is a simple concept. Just use and discuss ONLY London time (not GMT, EDT etc etc). It is the London time that business is done under (regardless of daylight savings). So it’s really ‘do we use the 0400 thru 0800 candles (London time) or the 0500 thru 0900 candles (London time)’? Do we wait for the 5th candle to close? If you do not wait for the 5th candle to close (or even trade off a break using the 2nd, 3rd or 4th for that matter), then you risk your swing candle be invalidated!!! So you might think you have a swing high for example because it has a lower high either side, you enter on a break up, but then discover that the candle you entered on becomes the swing high and you go on to get stopped out.
This poses an issue even waiting for the 5th candle to close, because of what i’ve said above re the posted chart … if you use it as a swing point (because one did not occur earlier), then you risk your trade going wrong.
The London open is known for it’s rubber band effect, or pull back effect where price moves strongly (and breifly) in one direction, then sling shots the other way to establish the direction for the day.
The other slight point of confusion is when drawing your trendline back to the first swing high/low, are you looking to the previous London day, or the previous New York day. I beleive the author may have inferred pre midnight New York time, but I think he may have meant pre midnight London time (which would make more sense).
Something else which may assist new and old members alike, is that when posting charts, you please indicate what timezone the chart is … as it is impossible to tell by just looking ;).
Cheers, Johnny.
JohnnyForex - I think that you are right. As I understand it from reading the Edward Revy original thread - if there isn’t a valid swing high or swing low then there isn’t a trade for the day. I only take a trade after the 5 candles have closed and it seems to work very well.
Hi Johnny - hope you are well.
If you are counting the overnight period only, then there are 3 swing highs in this period aren’t there? 2 swing lows also.
I agree that the first and 2nd circles (on the top trendline) are marginal but different colour candles appear in between their moves indicating a short swing and price does move up and down as drawn with my rough red line.
There was also news that day accounting for some of the moves as per yesterday…a similar fakeout to the downside.
