Quoting rockratDislikedi cant seem to understand which trendlines to draw. heres the current market, in a short and long term uptrend. are we meant to be loking only to trade with the trend, or are we meant to look at the most recent price action only (as i read the system). If so, then i wonder why we would not be looking for retracement signals, i.e sell signals.
please see my chart below, where i am asking, why are we not considering the yellow line, a very recent support line , that if broken would signal we go short?
several of the examples in the PPPresentations show such trades?Ignored
Just looking at some trades I've made and some backtesting, I think we should not only look at recent points, but go back to prior trendlines to see what has happened in the recent past to get a picture. Plus we know in our minds (psychological) that the 118/119 level in usd/jpy seems hard to break going up. Not saying it won't, but if it does break then Mouteki would be right. I just would not go long at this point. Even if the support breaks, it may just be a retracement (which can get you some pips by selling), but it may or may not be a trend reversal. But, I'd rather be short when the trend breaks and "hope" it is a reversal in the long run. Just my thoughts.