I was looking/following the very same setup as Emarco. My "story" and why I didn't go short:
This is the beauty of the 21MA on the SMAangle - you can only start looking for an entry after green line A. I didn't consider any setup before line A - very risky.
Then came point 1 - my small resistance line broken. Ignore the rest of the setup. Also point B - 21MA is broken. Another no-no in My Rules.
Hi Willem.
I was looking at that this morning, and my assessment was the same as yours, right down to the 21ema crossing that 0.1 line! In addition, on the price chart, when I see a crossover, I purposely wait for a second point at the 21ema so that I can draw one of your famous "little trend lines". I adopted that quite a while ago, and it's proved to be a great barrier against bad trades.
The charts have looked pretty flat since all that excitement last week, and it's been hard to find any action. A little bit of scalping here and there, and that's it, really. I guess we're all hoping now for the prices to start showing a bit of a kick-ass attitude for the rest of the week!
Oh, yeah. I noticed a few posts ago that somebody was asking why some of our ADX settings were different. Like emacro was using ADX 8 and I was using ADX 13 and so on. To be honest, I can't really say why we use different settings. I set up two ADX windows last night, one at 8 and the other at 13, just to see what the difference was. Unless my eyes are playing tricks on me, there really isn't much difference at all. The ADX itself may be a little over or under the 20/25 compared to the other one, but not really enough to make a vast difference. The DI's differ slightly, making a slight difference in entering a trade, but nothing dramatic.
So, Willem, I'd value your comments on this, as it does raise an interesting question as to whether we've got things set up right or not!
Cheers
Hi folks.
Golfer - Many thanks for your comments, chum, and I can see where you're coming from as regards using the ADX as a confirmation rather than a filter. Speaking for myself, I do like to see some sort of movement above the 25 line before taking the trade, assuming everything else checks out, of course.
Silver - Also many thanks to you, my friend, for your valuable comments. Yes, I understand the theory of ADX, but it does no harm whatsoever to read somebody else's comments. I've found in the past that I've picked up a nice little nugget of info that I hadn't realised before, and it could easily have been missed by passing over the post with the attitude of "yeah, I know all that already!" So thanks again, mate.
Incidentally, I'm only getting on this forum sporadically lately, as for some reason, I'm having trouble actually accessing it. I'll call it up from my favourites, and then things seem to just grind to a halt for reasons that are quite beyond me. I have very little trouble with any other site, but FF just lately is driving me nuts!
Don't worry, you are not the only one. had several problems yesterday to access and post information on FF. It was very, very slow and I thought there was a virus problem again. Didn't seems like a virus - hopefully just being overloaded.
But I'll try and keep posting and hopefully all the others. Because that was how I learned reading charts from Phillip.
Oh well, that's how it goes sometimes. Thanks again, guys, and good trading.
Cheers
