Jacko's Forex House of Pleasure and Pain
Jacko,
Firstly, your success is an inspiration. Secondly, thank you for posting your methodology in one place like this. I've always heard mention of you around the forum but hadn't ever seen any of your posts(through no fault but my own for being too lazy to search) You have simplified my charts immensely!
Anyway, I have been using your 5-year-old technique for about a week now on various pairs combined with an entry technique I have found elsewhere on the forums and have managed to snag some great results between last week and today. I've had no need for the "anti-hedging" technique(yet), but that is a GREAT idea. Just thought I'd show my results here and tell you thanks again.
Regards,
Kevin
Hi FxBabe,
I like to see a trend line broken (meaning price has closed underneath it) a couple of times, then a "confirmation" rally back to the resistance line and then another decline.
However, remember that I use medium to long term timeframes,so they dont happen that often. Thats why I like Forex and the Euro....they are very "trendy" markets.
To Westie, canados, FxBabe, Isotonic, kharvell and others who are contributing to this thread.
It is good to see you discussing things, thinking about them and working things out. It is much more rewarding to me compared to the normal "I am new and can you tell me your next trade in advance" email that I have been receiving. One earlier email even said "I haven't read your thread because I don't have time but can you tell me...."
So congratulations on being pro-active in your learning processes.
.
. In the least arrogant way possible, some newbies just don't get it. It's always got to be a on a silver platter.
! If my results continue as they have been, I will be sipping margaritas in paradise like you in no timeHiya Jacko =)
I'd be interested at which lows / spots you'd draw the current "main trend" trendline for EURUSD. I.e. connecting which weeks on weekly or monthly, so one gets a rough idea of what you personally look at (and comparing with one's own trendlines, obviously).
I'm sure Iso would also be very interested, he'sa dem lov' a' dem trendlines, mon!
Oh, and do you go by lows or by close to draw them?
Take care,
SeekingLight
Trading these lines can be very profitable, and you can do away with indicators if you follow a few simple rules...
1. The steeper the line the shorter it lasts, keep your stops tight if it moves away quickly. Keep your stops just above (resistance) or below (support) the line.
2. The price will always move back towards the support or resistance to test it, if there’s been a sizeable move, wait for the consolidation to bring it back to the line, then trade.
2. You need at least three touches (or points in a line) to confirm that it is a support or resistance level. Two is not enough. If the price action moves away fast from the line connected by these points it’s probably the dying gasp, but don’t trade until you hit that line again.
3. A good way to choose an entry is to look for an established line and follow it up with sell orders a few pips below (support) or buy orders above the line (resistance) in the opposite direction.
4. If a “trend” is older and you're not sure if it's going to break or not, wait till you're on the line and then straddle it, that way you can get into an older move. I wouldn’t recommend this though; rather wait for a change in direction. Once you’re into the rhythm you’ll almost always have an open position.
5. If you’re not sure phase in your trades, add to your position every ten or twenty pips.
6. Breaks off support and resistance are generally confirmed by big bars or a big bar, so if you see one on a line you know the “trend” has probably changed.
7. Price does not like support or resistance levels. It mostly tests them and then moves away quickly. You’ll rarely find much price action in the vicinity of the line. If price is hanging around a support or resistance level, it’s likely to break in the opposite direction.
8. If the market is moving up you only trade the support line, if down you only trade the resistance line...
Hi Jacko
Thank you for choosing not to post your trades here. I have seen this happen in other threads and it makes it very difficult for those of us that are serious about learning and becoming successful traders. This will surely create a much better learning environment for all of us. Thank you for taking the time to share your knowledge and experience with us. It is greatly appreciated. I still have a lot to learn, but I do believe that I am gaining a little better understanding every day. I am determined to be a " fisherman".
regards
pippocket
Something new that stood out for me in this thread was your Asia comment. My mind has been on that track as well. Also I like to travel there and think of it as a possible place to move to in the future.
