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Drawing correct resistance and support-lines

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  • #221
  • Feb 22, 2008 7:44am Feb 22, 2008 7:44am
Looks like dollar have started to turn, finally. Look how price touched down on 161.8 fib and shoot up.

GL with your eur/usd guys it shows potential right now, as chf is starting to turn.
Attached Image (click to enlarge)
Click to Enlarge Name: chf.gif Size: 26 KB
Measure twice, cut once
  • #222
  • Feb 22, 2008 7:46am Feb 22, 2008 7:46am
You need to wait for that shorter tl to break, don't go short before that happens!

Quoting magictrader
I'll wait for monday.
Have a great weekend all.
  • #223
  • Feb 22, 2008 7:49am Feb 22, 2008 7:49am
Quoting Rocroy
UJ is approaching supporting tl on 4H chart. If the tl holds, this is likely to give a upside push for GJ as well.

So possible long UJ at 106.85, target 100 pips.

Nice weekend all.

R

Attachment
Good analyze, your entry was spot-on. Price went off after touching 161.8 fib here too.
Attached Image (click to enlarge)
Click to Enlarge Name: jpy.gif Size: 40 KB
Measure twice, cut once
  • #224
  • Feb 22, 2008 7:59am Feb 22, 2008 7:59am
GJ: Looking for a quick reversal from london pivot if price action allows it;
Attached Image (click to enlarge)
Click to Enlarge Name: jpy.gif Size: 31 KB
Measure twice, cut once
  • #225
  • Feb 22, 2008 8:20am Feb 22, 2008 8:20am
About 20 pips, and we will have some strong resistance on E/U.

Can't wait for breakout of that huge triangle...
Attached Image (click to enlarge)
Click to Enlarge Name: eur.gif Size: 26 KB
  • #226
  • Feb 22, 2008 10:00am Feb 22, 2008 10:00am
GJ trade out @ 210.20, you got that EJ trade magic ?
Measure twice, cut once
  • #227
  • Feb 22, 2008 12:58pm Feb 22, 2008 12:58pm
hi roc.... tracked u down to here! lol


anyway this has been a nice gj chart 4 hour to work from if were a trendline guy....

those triangle seem to provide some nice trades....


any comments appreciated
Attached Image (click to enlarge)
Click to Enlarge Name: gj4hr.gif Size: 22 KB
  • #228
  • Feb 22, 2008 1:14pm Feb 22, 2008 1:14pm
Quoting robertsonakp
to draw correct ressitance and support lines
1.line charts should firstly be used
2.higher time frames such as 1hr,4hr and daily are best because lines drawn frm these time frames can be permanent and they have found to reoccur most. however, if the market is sideways at a particular time, lower time frames can be used for such situation.
3. for resistance areas chek for similar tops(conect them wit a line) and corelate those areas using 2 or more time frames and for supports chek for similar botoms , conect them with a line and also corelate using 2 or more time frames.
4.finally, ensure the accuracy of those lines by swiching to candlestik chart and looking if u hav these candlestiks there , hammer, inverted hammer, shooting star, any doji, gaps,bullish engulfing, bearish engulfing. always draw the lines at the open of the candlestik.

Please elaborate and illustrate with a chart.....
Same Whore .... Different Dress
  • #229
  • Feb 22, 2008 1:57pm Feb 22, 2008 1:57pm
hi dagoods, nice to see you here

some of the tls on your chart are just fine, some i don't quite understand...

i know that you've been playing with fibs, so a comment on that...

the difference between tls and fibs is that Bobokus' and Skunny's idea is based on breakouts, tls on the other hand can be traded if there is a breakout, and also if there is no breakout = trendline stays valid, price bounces...

so maybe tls give you more trading opportunities than fib breakouts? and it is easier to use pyramid type of entries to improve profitability?

just my 2 cents - after a couple of beers on friday ev you can comment almost anything

R

Quoting dagoods
hi roc.... tracked u down to here! lol

anyway this has been a nice gj chart 4 hour to work from if were a trendline guy....

those triangle seem to provide some nice trades....

any comments appreciated
  • #230
  • Feb 22, 2008 8:11pm Feb 22, 2008 8:11pm
Quoting dagoods
hi roc.... tracked u down to here! lol


anyway this has been a nice gj chart 4 hour to work from if were a trendline guy....

those triangle seem to provide some nice trades....


any comments appreciated
You're right about the 4h chart, especially the yellow resistance-line you had drawn, it could provide with some short-trades with low-risk entries IMO.

I wanna try trading those lines more aggressively next week. Take position every time price is failing to break those lines, looking at PA. This week I have been mostly looking for setups walking hand-in-hand with the daily trend, its yet to define if trading those lines against daily trend would be profitable in the longer run ? This week it would, but would it provide constantly + % on my account over a 3 months ? More trades = more risk. And I try to keep risk at minimum, but that's just me. Well, only 1 way to find out.

Any thoughts ?
Measure twice, cut once
  • #231
  • Feb 24, 2008 9:12pm Feb 24, 2008 9:12pm
aediaz1 and others, please keep up the great work. For me without tl and flat-line s/r levels, I don't even consider a trade. For me I trade with s/r drawn with tl's and flat-horizontal lines. Just like u I also use pf's and fib for targets.

thanks for this eye opening thread at the factory...
  • #232
  • Feb 25, 2008 1:13am Feb 25, 2008 1:13am
Quoting Stan
Not only if you are new, if you have been trading for awhile and something is missing in your trading and you have not incorporated some sort of a variation of this to your trading, THIS IS THAT! It is almost a guarentee!
LOL, easy with the guarantee dude.
  • #233
  • Edited 5:04am Feb 25, 2008 2:33am | Edited 5:04am
UJ trade is nicely moving to right direction. Move your SL to 107.10 and watch out that supporting tl.

... hit 100 pip tp.

Good trade.

Quoting Rocroy
UJ is approaching supporting tl on 4H chart. If the tl holds, this is likely to give a upside push for GJ as well.

So possible long UJ at 106.85, target 100 pips.
Attached Image (click to enlarge)
Click to Enlarge Name: uj now.gif Size: 27 KB
  • #234
  • Feb 25, 2008 6:05am Feb 25, 2008 6:05am
Looks like GJ is struggling with currently resistance @ 4h. If it holds we should see a drop very soon.
Attached Image (click to enlarge)
Click to Enlarge Name: gbphpy1.gif Size: 15 KB
Measure twice, cut once
  • #235
  • Feb 25, 2008 6:05am Feb 25, 2008 6:05am
Quoting gfxtrader
aediaz1 and others, please keep up the great work. For me without tl and flat-line s/r levels, I don't even consider a trade. For me I trade with s/r drawn with tl's and flat-horizontal lines. Just like u I also use pf's and fib for targets.

thanks for this eye opening thread at the factory...
Glad to hear, and good luck further with your trading !
Measure twice, cut once
  • #236
  • Feb 25, 2008 6:08am Feb 25, 2008 6:08am
Quoting gfxtrader
aediaz1 and others, please keep up the great work. For me without tl and flat-line s/r levels, I don't even consider a trade. For me I trade with s/r drawn with tl's and flat-horizontal lines. Just like u I also use pf's and fib for targets.

thanks for this eye opening thread at the factory...
Glad to hear, and good luck further with your trading !
Measure twice, cut once
  • #237
  • Feb 25, 2008 6:45am Feb 25, 2008 6:45am
Indeed, I think, current resistance should decide whether gbp/jpy shall go back to 206.90....here are my view for today..,
Attached Image(s) (click to enlarge)
Click to Enlarge Name: gbpjpy-30m-fib-tl-01.png Size: 31 KB
Click to Enlarge Name: gbpjpy-4h-fib-tl-02.png Size: 19 KB
  • #238
  • Feb 25, 2008 8:42am Feb 25, 2008 8:42am
Quoting gfxtrader
Indeed, I think, current resistance should decide whether gbp/jpy shall go back to 206.90....here are my view for today..,

Targeting 213 if 4h resistance fails. It's still rejecting GJ to go above. Price have been channeling for some days in 1h as you can see on the chart.
Attached Image (click to enlarge)
Click to Enlarge Name: gbphpy1.gif Size: 13 KB
Measure twice, cut once
  • #239
  • Feb 25, 2008 8:44am Feb 25, 2008 8:44am
Second scenario, and most likely too since 4h resistance holds.
Attached Image (click to enlarge)
Click to Enlarge Name: gbphpy1.gif Size: 14 KB
Measure twice, cut once
  • #240
  • Feb 25, 2008 9:03am Feb 25, 2008 9:03am
Yep, I agree, looks like she is heading south ...

Sometimes EW counting makes it easier to determine moves and targets... I'm still practicing with EW, so please comment if there is something not quite right...

Quoting aediaz1
Second scenario, and most likely too since 4h resistance holds.
Attached Image (click to enlarge)
Click to Enlarge Name: gj now.gif Size: 20 KB
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