Is this the end of the Mouteki system or is there more to come?
DislikedHello Sanchez, your supply line is drawn correctly -- but I am assuming that the next bar doesn't invalidate the resistance at point #1. Otherwise, that supply line would not be valid. Remember you need 2 bars on the right that is lower -- if the most recent bar shoots up, point #1 of supply line would not be a resistance anymore... so just take note here.
However, you have chosen the wrong point for the lowest low -- see my beige vertical line below. Look for the lowest low not in consolidation. I have also shown the projected profit PP for you.
PS.: Try to make your charts bigger in future.. may be easier to look at?Ignored
DislikedWhy is the stoploss a specific amount? Is it not better to have a stoploss placed under/over a strong resistance line, and adjust the units to fit your money management?Ignored
DislikedShouldn't the highest high be between point A and point B?
Would that be inclusive? For example, if your point A also had the highest high, would you use that candle or some other candle between A and B not including the points A and B where the demand line is drawn?
Also, in terms of EURUSD in the late July or early August timeframe, I think there could be dozens of false signals given. Anyone to prove me wrong?Ignored
DislikedI backtested the EURUSD in August and also found it to be a tough month to trade in. However I have not done the earlier months in the year that might have been really great for this system.Ignored
DislikedMy apologies then. I drew the lines using your chart. I downloaded your chart, enlarged it and drew the lines. Your vertical line is obstructing your chosen candle and I couldn't see where the low is. It just slipped my mind that this low might indeed be lower than the one I chose.
So as long as you know what you are doing... then all's good!
I am not sure if you had subtracted the low from the right level though - since I couldn't see a line there. You may not have drawn it.. that's fine of course, but just to be sure, I drew it below for you to check.
PS.: It is true that different charts may generate different patterns. :/Ignored
DislikedThe highest high (for a supply line ofcourse) can be any point between A and B, inclusive of the candles making up points A and B.
As far as the EURUSD, I don't think its suited to the Mouteki method because it is daytraded much more than any other pair, and that, in my mind, detracts from its 'trendability.'
Just my 2.Ignored