This is a follow up on m_radzi's question (post#51). I have included charts so hopefully this helps. The two questions are below with answers in red.
4. A good way to choose an entry is to look for an established line and follow it up with sell orders a few pips below (support) or buy orders above the line (resistance) in the opposite direction. This point is simply saying that a good way to enter is to first determine your trend (using preferably a daily or weekly chart). Once you have your defined trend, you will enter when the market breaks above the resistance level (I have indicated this with the green horizontal bar on chart 1). An alternative way is to place orders to sell should price break the support level (I have indicated this with the orange horizontal bar).**please keep in mind this is NOT the way I trade. I'm simply explaining this point to you.**
5. If a “trend” is older and you're not sure if it's going to break or not, wait till you're on the line and then straddle it, that way you can get into an older move. I wouldn’t recommend this though; rather wait for a change in direction. Once you’re into the rhythm you’ll almost always have an open position. As Bakuli has pointed out, straddling means you will place both buy and sell orders on at the same time when price reaches the trendline (I have shown this using arrows in chart 2). This is again an alternative way to enter when you are unsure whether price will break the trendline or bounce off it. Personally I find this approach not only very aggressive but very risky. I rather wait it out and see where price is going first then follow it. **please keep in mind this is NOT the way I trade. I'm simply explaining this point to you.**
I have included a 3rd chart showing the basics of how I do trade. First I determine the trend using a trendline. Everytime price comes back to the trendline or comes near it, I get ready to buy. If price breaks the most recent resistance level, I wait for it to retest that level first and buy when it goes up. Keep in mind this is a weekly chart as well. There's more opportunities when you switch to the daily chart. For a clearer summary, also read post#58
zoopy
4. A good way to choose an entry is to look for an established line and follow it up with sell orders a few pips below (support) or buy orders above the line (resistance) in the opposite direction. This point is simply saying that a good way to enter is to first determine your trend (using preferably a daily or weekly chart). Once you have your defined trend, you will enter when the market breaks above the resistance level (I have indicated this with the green horizontal bar on chart 1). An alternative way is to place orders to sell should price break the support level (I have indicated this with the orange horizontal bar).**please keep in mind this is NOT the way I trade. I'm simply explaining this point to you.**
5. If a “trend” is older and you're not sure if it's going to break or not, wait till you're on the line and then straddle it, that way you can get into an older move. I wouldn’t recommend this though; rather wait for a change in direction. Once you’re into the rhythm you’ll almost always have an open position. As Bakuli has pointed out, straddling means you will place both buy and sell orders on at the same time when price reaches the trendline (I have shown this using arrows in chart 2). This is again an alternative way to enter when you are unsure whether price will break the trendline or bounce off it. Personally I find this approach not only very aggressive but very risky. I rather wait it out and see where price is going first then follow it. **please keep in mind this is NOT the way I trade. I'm simply explaining this point to you.**
I have included a 3rd chart showing the basics of how I do trade. First I determine the trend using a trendline. Everytime price comes back to the trendline or comes near it, I get ready to buy. If price breaks the most recent resistance level, I wait for it to retest that level first and buy when it goes up. Keep in mind this is a weekly chart as well. There's more opportunities when you switch to the daily chart. For a clearer summary, also read post#58
zoopy
Attached Image(s) (click to enlarge)
