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Drawing correct resistance and support-lines

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  • #1,421
  • Apr 22, 2008 8:16am Apr 22, 2008 8:16am
Quoting Umairs2004
Wooow Almost +200 Bullish Pip's in G/J...Bullish even still in 2nd-session...
Umair!!!
Yeah nice bull-run we had there. Price is stalling at 4h TL right now. If price is going through, there is a probability to see new highs, IMO.

Looking at daily range we have "only" seen 254 pips so far so its far from impossible to continue north.
Measure twice, cut once
  • #1,422
  • Apr 22, 2008 8:36am Apr 22, 2008 8:36am
Quoting Paj
Hi all, no trading today, Car problems had to spend a rainy morning at Nissan.

Nice trades this morning on Cable and Geppy. Aediaz1, this is your thread and the theme is perfect perfect for me, the 30 minute works especially well, entry gives enough time to see how it plays out and to get the trade set without having to crash around on lower time frames, although like yesterday it can help. I am familiar with some of the targets on breaks however, still have problems with stops if the trade doesn't move in my direction more or less straight away, I expect a small pull back but with your experience and Umairs is there any further light you can throw on the subject. Closing a trade too soon can also be an issue as targets are not always hit! I look at previous support and resistance points, round numbers and reversal candles. On posting trades I will try and state why I get into a trade and why I get out - targets etc. anything more you guys can add on stops and take profits would be great.

Thanks all for the imput on this great thread.

Paj
I'm glad to see you gain some valuable knowledge in here.

About stops, there is 100 different ways to put them. Someone have regular number like 20-50 pips no matter what which I find pretty useless. Mostly because if you open a position based on technical analyze your SL should be based on it too. Not by any random number.

Furthermore, if you enter when price heading through a TL your SL should be in close distance (opposite of) your TL, or if you like to play it with larger SL, you could enter SL below/above pattern.

Let me show 2 charts from todays trading.





Haven't said this before, but its actually possible to reverse your position when you see a fake breakout, e/u particular. But I don't recommend it for starters, because it would expose yourself for two potential losses within few minutes which is devastating for the newcomers confidence.
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Measure twice, cut once
  • #1,423
  • Apr 22, 2008 8:39am Apr 22, 2008 8:39am
SL hit, reverse position on e/u;
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Measure twice, cut once
  • #1,424
  • Apr 22, 2008 2:38pm Apr 22, 2008 2:38pm
Hey guys this is a cool thread, managed to read through it yesterday from the beginning.
I mean I love triangles formations and this was the first pattern I ever noticed on my own , I really thought I was going to make it big time but you really gotta know how to play them properly I guess.
On a bigger scale im thinking that falling wedge formation on the daily is looking good.

I know some of my lines are not as you would draw but it sort of makes sense.
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On-site guru & also FF member's' psychiatrist, when not drinking tea
  • #1,425
  • Apr 22, 2008 3:17pm Apr 22, 2008 3:17pm
Quoting Bones
Hey guys this is a cool thread, managed to read through it yesterday from the beginning.
I mean I love triangles formations and this was the first pattern I ever noticed on my own , I really thought I was going to make it big time but you really gotta know how to play them properly I guess.
On a bigger scale im thinking that falling wedge formation on the daily is looking good.

I know some of my lines are not as you would draw but it sort of makes sense.
Hi Bones. glad to hear

Just keep in mind that wedges is not along with favorite patterns like flag, pennants, triangles etc. This is some of the patterns I have seen most fake break-outs on. I have no statistic on it (yet) but if you look through T. Bulkowski's (on stocks) work you'll find that he rank wedges as low-performance patterns.

Almost like having 1 pair in texas hold'em. It's playable, but with caution.

I need to state that this is only observations I have done and sharing this "conclusions" from my mind as we speak so feel free to share any other views based on your experience with wedges. So if you trade wedges with high damn high success-rate don't take let this get into you
Measure twice, cut once
  • #1,426
  • Apr 22, 2008 3:32pm Apr 22, 2008 3:32pm
Brother, this is lovely thread.
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  • #1,427
  • Apr 22, 2008 3:36pm Apr 22, 2008 3:36pm
Aediaz I appreciate your advice and take it on board my friend.
I have never traded a daily wedge so I would be thrilled if this turns out to be one but I know how fragile this pair is so wont be surprised if it is not.
On-site guru & also FF member's' psychiatrist, when not drinking tea
  • #1,428
  • Apr 22, 2008 3:52pm Apr 22, 2008 3:52pm
Quoting rugbygee
Brother, this is lovely thread.
Thanks to all of it's participants, without doubt. Many nice inputs from various good traders along this thread
Measure twice, cut once
  • #1,429
  • Apr 22, 2008 4:05pm Apr 22, 2008 4:05pm
Quoting Bones
Aediaz I appreciate your advice and take it on board my friend.
I have never traded a daily wedge so I would be thrilled if this turns out to be one but I know how fragile this pair is so wont be surprised if it is not.
Just glad to contribute in some way.

Let's keep ourself updated on potential wedges and then see how they develop
Measure twice, cut once
  • #1,430
  • Apr 23, 2008 1:08am Apr 23, 2008 1:08am
Hi There guy's...Today my eye's are on E/U seem's bearish to me...im waiting for some important breakdown's let's see......
Umair!!!
  • #1,431
  • Apr 23, 2008 1:53am Apr 23, 2008 1:53am
Quoting Umairs2004
Hi There guy's...Today my eye's are on E/U seem's bearish to me...im waiting for some important breakdown's let's see......
Umair!!!
Hi there Guy's I said in my last post about Euro/Usd that it seem's bearish to & im looking forward for some important breakdown now see the screenshot...i immediatly enter after a breakout & exit for +26 Pip's just before The important New's announcement. Hope so more bearish movement is expected but im afraid important data maynot change the situation against me...Trend was in my favour... A clean & clear breakout is this...
Umair!!!
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  • #1,432
  • Apr 23, 2008 2:06am Apr 23, 2008 2:06am
Quoting Umairs2004
Hi There guy's...Today my eye's are on E/U seem's bearish to me...im waiting for some important breakdown's let's see......
Umair!!!
Good morning Umairs,
As I look at the E/U I am hesitant to sell it. I am afraid it may only go down a short way to continue it's rise.
Attached Image (click to enlarge)
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  • #1,433
  • Apr 23, 2008 2:19am Apr 23, 2008 2:19am
Quoting Dcb
Good morning Umairs,
As I look at the E/U I am hesitant to sell it. I am afraid it may only go down a short way to continue it's rise.
Hi Dcb...
This is how i confirmed the bearish Movement on E/U...
1)Go Back 2-Daily Chart You will find E/U Stuggling & fail's to Break the Upper Line of trendline... Signal No#1...

2) Than Go Back to 4-Hour chart...I found the formation of reversal candles there signaling the down trend...+ Some commen indicator's & My own's observation... Signal No#2...

3) Than E/U Successfully manage to break the lower line of trendline in a 30-Minutes chart & confirmed me to go short so i go for it...+52 Pip's so far as E/U Drop's from 1.5990 to 1.5938 So far......
Being a daytrader i dont enter during the important new's announcement's also exit before...:... So exit for +26 Pip's onthe board......
Umair!!!
  • #1,434
  • Apr 23, 2008 2:24am Apr 23, 2008 2:24am
Quoting Umairs2004
Hi Dcb...
This is how i confirmed the bearish Movement on E/U...
1)Go Back 2-Daily Chart You will find E/U Stuggling & fail's to Break the Upper Line of trendline... Signal No#1...

2) Than Go Back to 4-Hour chart...I found the formation of reversal candles there signaling the down trend...+ Some commen indicator's & My own's observation... Signal No#2...

3) Than E/U Successfully manage to break the lower line of trendline in a 30-Minutes chart & confirmed me to go short so i go for it...+52 Pip's so far as E/U Drop's from 1.5990 to 1.5938 So far......
Being a daytrader i dont enter during the important new's announcement's also exit before...:... So exit for +26 Pip's onthe board......
Umair!!!
Umair, Thank you for your explanation of how you made your decision. Your were right. Good job. Do you think it will continue down?
  • #1,435
  • Apr 23, 2008 2:34am Apr 23, 2008 2:34am
Quoting Dcb
Umair, Thank you for your explanation of how you made your decision. Your were right. Good job. Do you think it will continue down?
Seem's another sign of reversal candles in a 30-Minutes chart maybe after some bullish movement i hope so it will remain bearish today but be-aware of some important fundamental's......
Umair!!!
  • #1,436
  • Apr 23, 2008 2:36am Apr 23, 2008 2:36am
Umair,
I believe we will have to wait another 30 minutes until all of the Eur news is out to trade E/U.
  • #1,437
  • Apr 23, 2008 2:42am Apr 23, 2008 2:42am
Quoting Dcb
Umair,
I believe we will have to wait another 30 minutes until all of the Eur news is out to trade E/U.
Well Im a Breakout Player... & Believe on those entrie's which based on breakout's + with trend in my favour...Here we have a trend in our favour but this is the last EURO important fundamental which is about to announce after 1-Hour & 15 Minute's...
EURhttp://www.forexfactory.com/images/m...act_medium.gifIndustrial New Orders m/m

Let's see it's got any impact or not... But technically if we see then we a bearish trend... Now Waiting for last Euro Fundamental & it's impact...
Umair!!!
  • #1,438
  • Apr 23, 2008 2:57am Apr 23, 2008 2:57am
Morning guys, my view pre news lets see.
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  • #1,439
  • Apr 23, 2008 3:41am Apr 23, 2008 3:41am
Morning all.

Don't forget that e/u is bullish. Very bullish. 1 easy way to determinate this is by using higher lows and higher highs;
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Measure twice, cut once
  • #1,440
  • Apr 23, 2008 4:26am Apr 23, 2008 4:26am
Quoting rugbygee
Brother, this is lovely thread.
agree rubygee, great thread but thats all due to all us lovely people.
joy
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