Roadmap - A Way To Read Markets

Two opportunities that look to be forming.

Laura, I'd love your input on the two points below:

1. These two are naturally correlated. In instances like this, do you usually take both setups, or pick the best and run with It? Side note, checked the EURGBP, and they look to be locked neck and neck, so no naturally strong/weak to be seen.
2. Given the time, while both setups look great, I know we are about 3 hours from market open in London... Meaning that even though setup looks nice, I can see this being a slow churn. Do you care about that when a setup presents itself?

Channel trade. Had broken Friday's low and could not hold above it on retest. Had also broken ADR low and retested it. All TFs on SMA dash were red and RSI was below 40. TP hit overnight.

Good morning all.

I am new here and getting used to this simple yet effective system.

I am looking at UCad on the hourly chart. Is this too early to go long.?

Are you sure Dave.?
That level comes in on mine as the European open. That is 10pm yesterday our time.

That's exactly the point, summertime time , wintertime ? just drives me mad
I just trade what my platform and server gives me
At the end of the day its a line so to me above + below -

Unfortunately not.

Hi

Personally, I prefer to see Frankfurt session before I enter. However, I know that's not possible for some people due to timezones.

The setups themselves were okay, but we now know they didn't work out very well.

In terms of correlation, I'd advise not to enter multiple trades on correlated currencies or, if you do, enter both at half-size so you are spreading the risk.

Morning

If you zoom out, it's not the most attractive chart right now.

However, from a technical point of view it is a valid setup.

Took GA after it broke DAILYOEN but TargetPrice wasnt much to ADR low.

AUD/JPY > my TP hit ADR high - still more upside moment, but ill take.

my first trade with this wonderful roadmap!
everything is logic and clear minded.
THX laura

Well done

Been playing with Micro Futures lately and put up this chart. The previous. day's H/L are off screen -nearer to yesterday's High if anything. What struck me was an overlay I put up with %R on it. Used in reverse -buy at high and sell at low. Forward testing may shatter the illusion of the usefulness of %R. However, as it stands, Lauras approach from post one still rules okay and is dominant to whatever personal tweaks I may add.

Edit -look at the action around the 200 !

Enquired about a poodle puppy earlier - they wanted £3000 for it - 'Covid lock down profiteering' I hear you cry - yes indeed. My silent reply ended in "off."

Hi, EA has a good set-up for me, hopefully will run down to next support.

A nice 80 pips from the Dow last night 12:30 UK time

Congrats on the thread Laura! So I did my first trade with the system and caught some pips with this buy on AC. As I am new with this system I am mainly trading when the channel cross the SMA and also on channel failures. I set a conservative TP around the ADR High and the Day High expecting them to act as resistance. Do I have the good concept?

Use of Simple Trendlines

I was talking to traders today about difficulties they were having in telling when a channel cross or failure was likely to succeed. In some cases I noticed they were fighting against momentum.

This served as a reminder that I have neglected to mention a very simple 'technique' that can be used to give you more information on whether the momentum is going to be with or against you.

The humble trendline. For our purposes, we can ignore the technical definition of a trendline having to join at least 3 points and simply draw them joining two peaks or valleys. Let's look at a few chart examples.



In the above example, we draw our first trendline joining the declining highs. We do this in order that we might be able to tell when the momentum is becoming more bullish. This warns us not to take the channel failure to the short side. We then are able to add a second trendline, joining the advancing lows. This tells us the channel cross is a good option for a trade when it happens.



In the above example, we had been enjoying a downtrend. By drawing a simple trendline, we could be alerted to the likelihood that we should not aim to go short when the channel started to approach the SMA.



In the above example, we were faced with a channel failure and a simple trendline told us the momentum was down and it was a viable trade. However, a lower trendline suggested there was short-term bullish momentum. The more conservative option was therefore to wait until that trendline was broken to get short.

If you're following this methodology and having problems finding the right trades, please do try this simple idea of drawing rudimentary trendlines to establish momentum.

Hope this helps.

Not brave enough to leap upon marked break of price. Will sit and wait awhile until gyrations slow down. My days of 'fast and furious' are long gone
Anyone take the break short on the 200 line ?

Thank you so much for everything, Laura, you have added so much to me.

tryed touch trades?