Wow, has this thread ever exploded! I had given it up.
JohnW, THANK YOU for posting the method, this is simple, straightforward, well-explained, and I like the system.
One thing nobody has mentioned -- the chart shows bid price. A resistance line drawn on the chart is going to be off by the amount of the spread, for LONG orders. I've never worried about this before, but since we're looking to enter on a 2 pip breach, placement of the line is critical, and you need to add the spread to your entry price on long orders if you plan to enter exactly 2 pips above the line.
On short orders, it works out OK, WYSIWYG.
JohnW, THANK YOU for posting the method, this is simple, straightforward, well-explained, and I like the system.
One thing nobody has mentioned -- the chart shows bid price. A resistance line drawn on the chart is going to be off by the amount of the spread, for LONG orders. I've never worried about this before, but since we're looking to enter on a 2 pip breach, placement of the line is critical, and you need to add the spread to your entry price on long orders if you plan to enter exactly 2 pips above the line.
On short orders, it works out OK, WYSIWYG.