Measure twice, cut once
Drawing correct resistance and support-lines
- #945
- Mar 27, 2008 5:03am Mar 27, 2008 5:03am
i've found that it is far better if the support or resistance be a horizontal line.
especially so if it's a support turned resistance and vice versa.
as for breakout from patterns, i find rectangles far more reliable than triangles, wedges, pennants...........
as for triangles - a break of horizontal support of a descending triangle and break of horizontal resistance of an ascending triangle produce less fakes too.
so many times i find a breakout of diagonal trendlines be it just a straight line or triangle, wedge, pennant to be unreliable. of course, sometimes, it can lead to big wins.
i find things are more difficult and more unpredictable than previously. for example, there's a breakout to the downside in the direction of the prior trend (primary trend) and then later prices move up again as it turns out that prices had merely gone down to the lower trendline of a up channel and vice versa for a breakout to the upside.
so perhaps drawing possible channels even before they're formed can reduce losses ?
prices also seem more 'constipated' and then big movements when Dow opens then winners can easily turn into losers or break-even. i also find trailing stops to be more difficult now as prices would go in the 'right' direction a lot only to retrace very close to entry prices before resuming it's 'right' direction.
nowadays, i daren't play breakouts anymore and try to look out for those support turned resistance lines and vice versa as well as bounces off horizontal S/R.
if one fine day when most pairs start acting like the CAD pairs then i'm gonna have to tear my hair out.
very very sorry for all the complaining and grumbling, maybe i'm the only one having these problems.
especially so if it's a support turned resistance and vice versa.
as for breakout from patterns, i find rectangles far more reliable than triangles, wedges, pennants...........
as for triangles - a break of horizontal support of a descending triangle and break of horizontal resistance of an ascending triangle produce less fakes too.
so many times i find a breakout of diagonal trendlines be it just a straight line or triangle, wedge, pennant to be unreliable. of course, sometimes, it can lead to big wins.
i find things are more difficult and more unpredictable than previously. for example, there's a breakout to the downside in the direction of the prior trend (primary trend) and then later prices move up again as it turns out that prices had merely gone down to the lower trendline of a up channel and vice versa for a breakout to the upside.
so perhaps drawing possible channels even before they're formed can reduce losses ?
prices also seem more 'constipated' and then big movements when Dow opens then winners can easily turn into losers or break-even. i also find trailing stops to be more difficult now as prices would go in the 'right' direction a lot only to retrace very close to entry prices before resuming it's 'right' direction.
nowadays, i daren't play breakouts anymore and try to look out for those support turned resistance lines and vice versa as well as bounces off horizontal S/R.
if one fine day when most pairs start acting like the CAD pairs then i'm gonna have to tear my hair out.
very very sorry for all the complaining and grumbling, maybe i'm the only one having these problems.
- #951
- Mar 27, 2008 6:07am Mar 27, 2008 6:07am
- Joined Aug 2007 | Status: Trader | 3,135 Posts
i've found that it is far better if the support or resistance be a horizontal line.
especially so if it's a support turned resistance and vice versa.
as for breakout from patterns, i find rectangles far more reliable than triangles, wedges, pennants...........
as for triangles - a break of horizontal support of a descending triangle and break of horizontal resistance of an ascending triangle produce less fakes too.
so many times i find a breakout of diagonal trendlines be it just a straight line or triangle, wedge, pennant to be unreliable. of course, sometimes, it can lead to big wins.
i find things are more difficult and more unpredictable than previously. for example, there's a breakout to the downside in the direction of the prior trend (primary trend) and then later prices move up again as it turns out that prices had merely gone down to the lower trendline of a up channel and vice versa for a breakout to the upside.
so perhaps drawing possible channels even before they're formed can reduce losses ?
prices also seem more 'constipated' and then big movements when Dow opens then winners can easily turn into losers or break-even. i also find trailing stops to be more difficult now as prices would go in the 'right' direction a lot only to retrace very close to entry prices before resuming it's 'right' direction.
nowadays, i daren't play breakouts anymore and try to look out for those support turned resistance lines and vice versa as well as bounces off horizontal S/R.
if one fine day when most pairs start acting like the CAD pairs then i'm gonna have to tear my hair out.
very very sorry for all the complaining and grumbling, maybe i'm the only one having these problems.
Lol, it took me some trades to be aware of NY open. Can't remember how many times US session come in and "screwed" the market.
For me, this period have been very profitable trading breakouts. Umairs have had a very good period too from what I have observed. Are you sure your drawings have been correct ?
Also remember that ALL patterns fail from time to time. This is why MM is so damn important. So when you saying price break out of pattern and then change direction for the upside, you have a failed pattern.
We are all here to learn and improve so feel free to post your charts
Measure twice, cut once
- #952
- Mar 27, 2008 6:11am Mar 27, 2008 6:11am
well done dcb. 
in search of adventure i might say that usd/jpy it will break down. But this formation it's a conntinuation pattern so it will go up..to some point don't know where but it will not break any resistance then it will go down.
who's with me?
http://img256.imageshack.us/img256/7...7032007yc0.gif
lol till i posted it was crashing down.. lol.. so i miss this trade.
in search of adventure i might say that usd/jpy it will break down. But this formation it's a conntinuation pattern so it will go up..to some point don't know where but it will not break any resistance then it will go down.
who's with me?
http://img256.imageshack.us/img256/7...7032007yc0.gif
lol till i posted it was crashing down.. lol.. so i miss this trade.
- #953
- Mar 27, 2008 6:23am Mar 27, 2008 6:23am
- Joined Aug 2007 | Status: Trader | 3,135 Posts
well done dcb.
in search of adventure i might say that usd/jpy it will break down. But this formation it's a conntinuation pattern so it will go up..to some point don't know where but it will not break any resistance then it will go down.
who's with me?
lol till i posted it was crashing down.. lol.. so i miss this trade.
Measure twice, cut once
- #954
- Mar 27, 2008 6:44am Mar 27, 2008 6:44am
- Joined Jan 2007 | Status: Trader | 3,719 Posts
i have a feeling that g-j is gonna break this time. it's just that i find it hard to believe 
. three days in a row, testing same area... it's either gonna drop like a rock, or shoot up. 194.50 area, or 204 area.
. three days in a row, testing same area... it's either gonna drop like a rock, or shoot up. 194.50 area, or 204 area.
Nihil Sine Deo.
- #955
- Mar 27, 2008 6:48am Mar 27, 2008 6:48am
- Joined Aug 2007 | Status: Trader | 3,135 Posts
i have a feeling that g-j is gonna break this time. it's just that i find it hard to believe
Measure twice, cut once
- #956
- Mar 27, 2008 6:59am Mar 27, 2008 6:59am
i enter eariler in the baddest point, i pissed off now. 
hope still it's going down.
enjoy.
http://img168.imageshack.us/img168/3...7refileeg5.gif
my sl it's @ 99,83.
hope still it's going down.
enjoy.
http://img168.imageshack.us/img168/3...7refileeg5.gif
my sl it's @ 99,83.
- #957
- Mar 27, 2008 7:10am Mar 27, 2008 7:10am
- Joined Aug 2007 | Status: Trader | 3,135 Posts
Measure twice, cut once
- #959
- Mar 27, 2008 7:36am Mar 27, 2008 7:36am
- Joined Aug 2007 | Status: Trader | 3,135 Posts
Measure twice, cut once