USD-JPY in observation, just need to meet a third point.
1. Break of trend line.
2. Breaking last minimum higher.
3. Recoil and break again from the last highest
When we complete point three, we enter shorts.
Your observations are well received.
Hello traders interested in learning every day. From the date I will be adding a new system that is part of the price action, but based on supports and resistance, which is the basis of any good tool we need to analyze the chances of entering an operation.
Each day that we dedicate to this work is a new opportunity to learn, and every time we do we have the need to polish our strategy, system, method, until we are comfortable, with it.
From now on I want to share a method that is giving a lot to talk about through all the Spanish media of mr. Alberto Chan Aneiros, who shares his knowledge openly and challenges those who say they are professionals in trading to show daily, weekly and monthly operations, showing a very interesting performance.
To train the human eye and draw lines of support and resistance using trend lines or guidelines, it is necessary to identify the highest peaks of each swing and also the lowest points of each swing. Here is an example.
From now on I will begin to draw lines joining two initial points of each swing. The entry to the market occurs when the price reaches or approaches by 3, 4, 5 times to the line or zone traced in case of support or resistance.
The advantage with this method is to project a tour of the new swing as the previous tour, with a tight stop loss, above the trend line in case of short operation, or below trend line in case of operation in long.
According to the experience in previous operations, this method has a probability of success of 70% against 30% that the price for other causes does not respect the bullish or bearish guideline and break it, triggering a continuation of the previous swing. Here is an example.
As you can see there are many opportunities that are presented to us every day, and that we have missed, mostly due to ignorance and others due to lack of time to be in front of the PC. Apart I must say that this method applies to all currency pairs, indexes, preferably in time frames from one hour onwards. Here the EU last week.
The full bitcoin 4 weeks in free fall and while some lose by the devaluation of this currency, speculators take advantage of this downtrend.
For this week we have to be attentive what the price does when it reaches a bearish directrix.
On the day chart you see more detailed what the price is doing with the new resistance, you have searched for it for the second time, and the price has bounced back. We expect good trading.
thanks for posting these charts. Very helpful. So entry on the 3rd touch of trendline?? 3rd church validates that trendline for you?
Ignored
Rtiger29 is correct. For a short operation, we draw a line looking for the highest swing and when the price arrives for the third time to our trend line, we look for short trades. And vice versa for long operations.
Here is another example of the footprint left by the market in the two previous swing. It's just a matter of patience and expect the price of entry. And the best is the risk - benefit relationship.
That's the idea, keep the graph as clear as possible to see what the price does.