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Drawing correct resistance and support-lines

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  • #1,681
  • May 13, 2008 5:44am May 13, 2008 5:44am
Quoting Dcb
I believe it can go down to the lower TL that I have drawn, but now that I am out I am going to leave it alone. I will have to signoff soon, so I do not want to enter a trade at this time. Show me your chart and your thoughts.

Indeed, it should break down the H1 LTL and go for the H4 LTL.
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  • #1,682
  • May 13, 2008 5:47am May 13, 2008 5:47am
It will go for the daily LTL...

Also,labels on chart came out strange...

sorry...
  • #1,683
  • May 13, 2008 6:21am May 13, 2008 6:21am
Quoting jupiter_peak
It will go for the daily LTL...

Also,labels on chart came out strange...

sorry...
It is time for me to sign off. I will you well trading today. It could be a frustrating day. I am attaching my M30 chart for E/U. There are not any good patterns at this time for an entry.
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  • #1,684
  • May 13, 2008 7:51am May 13, 2008 7:51am
Quoting Dcb
It is time for me to sign off. I will you well trading today. It could be a frustrating day. I am attaching my M30 chart for E/U. There are not any good patterns at this time for an entry.

Hey Dcb,

Sorry to disppoint you, but there were multiple breaks after the US news. Always try to combine TA with FA.

Jupiter.
  • #1,685
  • May 13, 2008 9:05am May 13, 2008 9:05am
Everyone,

Cable is testing D1 LTL.

Check it out.
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  • #1,686
  • May 13, 2008 9:47am May 13, 2008 9:47am
Quoting jupiter_peak
Hey Dcb,

Sorry to disppoint you, but there were multiple breaks after the US news. Always try to combine TA with FA.

Jupiter.
So were you able to have a gain with the E/U, and are you selling the G/U?
  • #1,687
  • May 13, 2008 10:22am May 13, 2008 10:22am
Quoting Dcb
So were you able to have a gain with the E/U, and are you selling the G/U?
There were multiple breaks for other pairs...

USDJPY and USDCHF for example...


Jupiter
  • #1,688
  • May 13, 2008 12:00pm May 13, 2008 12:00pm
Guys,

Help me out!!!

There were just good news for GBP today and nothing happened!! It kept going down. Than it tested D1 LTL twice.

When it came to a clear buy area, it just dropped down again!!

Eventhough all short term indicators are pointing up, it seems as it doesn't have the fuel to go into a fast paced rise.

Now, D1 is indicating a descending wedge which means it should go up. There is a strong LTL at 1.9430.

H4 is also being held within a descending wedge. It looks to me as it will go up.

H1 is the same as D1 and H4.

Here is the hard part: If none of the above is confirmed, all of them and especially D1's wedge, should become a descending triangle.

I believe we should keep a close eye for the break some time this week.

Of course now it fell into a whipsaw so it's a bit hard to judge the bullish power. Can't wait for tommorows London session.

Have a nice one.

Jupiter.
  • #1,689
  • May 13, 2008 12:17pm May 13, 2008 12:17pm
If you want to get news involved in trades, then you should try to understand effect of each economical release.
Today we had inflation data, it was higher than expected, that means, rising inflation in UK, from one side its good for currency, but BOE want to have it at 2 percents level, so now its not good at all.
  • #1,690
  • May 13, 2008 12:25pm May 13, 2008 12:25pm
Quoting sDRs
If you want to get news involved in trades, then you should try to understand effect of each economical release.
Today we had inflation data, it was higher than expected, that means, rising inflation in UK, from one side its good for currency, but BOE want to have it at 2 percents level, so now its not good at all.
When i started to trade, it was more than year ago, i watched news only according to its colour, if its green - good, lets buy, if its bad - lets sell
Now im much more accurate about that and i try to stay a little bit out from those.
  • #1,691
  • May 13, 2008 1:27pm May 13, 2008 1:27pm
Quoting sDRs
If you want to get news involved in trades, then you should try to understand effect of each economical release.
Today we had inflation data, it was higher than expected, that means, rising inflation in UK, from one side its good for currency, but BOE want to have it at 2 percents level, so now its not good at all.
I don't trade the news. Basicaly, I am trying to find if it will break LTL or not(GBP/USD).

When I mentioned 'buy'area, it was because it broke the UTL of a triangle after it had bounced from the UTL.

As you may observe, I trade TA. Not that news and other fundamentals can't be coupled with TA. For instance today it was a great demosntration of that.

We had a few pairs today that were set up for a break through TA and had a little 'push' from the news in the US.
  • #1,692
  • May 13, 2008 2:25pm May 13, 2008 2:25pm
Quoting jupiter_peak
I don't trade the news. Basicaly, I am trying to find if it will break LTL or not(GBP/USD).

When I mentioned 'buy'area, it was because it broke the UTL of a triangle after it had bounced from the UTL.

As you may observe, I trade TA. Not that news and other fundamentals can't be coupled with TA. For instance today it was a great demosntration of that.

We had a few pairs today that were set up for a break through TA and had a little 'push' from the news in the US.
I have experienced the same frustration. Tomorrow could be a trying day, because of all of the GBP reports coming out. Traders may sit back until they have digested the news, so there may be a lot of whipsaw action with Cable tomorrow. Although I trade breakouts, my first choice is selling from resistance or buying from support. I then have to make sure the price does not go to the opposing barrier (support or resistnce) and reverse. If it does break through I stay in, if it can not break through I close my position. When news is released, I do not enter until the market settles down. When the G/U shot up this morning after the 8:30 GMT news I waited. My observation the market can react violently after the news release if there has been a surprise or what is reported is not what was expected. Then the market continues to the overall trend of the pair. I will see you for the London session tomorrow.
  • #1,693
  • May 13, 2008 3:44pm May 13, 2008 3:44pm
Have a look.
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  • #1,694
  • May 13, 2008 5:21pm May 13, 2008 5:21pm
Quoting Dcb
I thought G/U was going to go down, but now it is not giving any indication of where it is going. I am waiting for the news to see if it gets G/U off the fence.
Looked like price already had moved down. Look how price formed around 50% retracement. I have personally stayed away from g/u lately, its just too messy, even on daily chart.
Measure twice, cut once
  • #1,695
  • May 13, 2008 5:33pm May 13, 2008 5:33pm
Quoting aediaz1
Looked like price already had moved down. Look how price formed around 50% retracement. I have personally stayed away from g/u lately, its just too messy, even on daily chart.
I have stayed away from G/U because it is so volatile. This volatility is really seen on the M30 chart. I doesn't move in any direction for any length of time. I guess that would be ideal for a short term trader. I have even stayed away from the Yen. I am focusing more right more on the E/U and the U/C. I am expecting tomorrow to be a challenging London session for the G/U.
  • #1,696
  • May 13, 2008 5:38pm May 13, 2008 5:38pm
We have missed you, and your insight of our chart analysis. I hope we see you tomorrow.
  • #1,697
  • May 13, 2008 5:41pm May 13, 2008 5:41pm
Quoting PipHacker
Some good Pip's On Usd/Cad Guy's
Don't forget to consult with higher TF. I only putted those dotted blue lines forming a channel to remember myself that price is going downward until we see any establishment above those lines. Nothing of significant (technical) issue as you see price have touched below/above those TL.

1.0000 area have provided us with strong support for now. I'll be following this development closely on daily and 4h chart.
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Measure twice, cut once
  • #1,698
  • May 13, 2008 6:00pm May 13, 2008 6:00pm
Quoting Dcb
It is time for me to sign off. I will you well trading today. It could be a frustrating day. I am attaching my M30 chart for E/U. There are not any good patterns at this time for an entry.
I see how your lines develop for improvements almost daily. Allow yourself to put some areas of plain S/R (horizontal lines) on your charts too. Using 4h and daily (with some practice 1h too) will give you some good areas of S/R, IMO.
Sometimes you will witness the confluence between TL and S/R.

For those unsure how to spot strong S/R, just look on your charts and notice what levels price doesn't like at all (on what rate price stay least time on).

G/J;
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Measure twice, cut once
  • #1,699
  • May 13, 2008 6:07pm May 13, 2008 6:07pm
Quoting jupiter_peak
Guys,

Help me out!!!

There were just good news for GBP today and nothing happened!! It kept going down. Than it tested D1 LTL twice.

When it came to a clear buy area, it just dropped down again!!

Eventhough all short term indicators are pointing up, it seems as it doesn't have the fuel to go into a fast paced rise.

Now, D1 is indicating a descending wedge which means it should go up. There is a strong LTL at 1.9430.

H4 is also being held within a descending wedge. It looks to me as it will go up.

H1 is the same as D1 and H4.

Here is the hard part: If none of the above is confirmed, all of them and especially D1's wedge, should become a descending triangle.

I believe we should keep a close eye for the break some time this week.

Of course now it fell into a whipsaw so it's a bit hard to judge the bullish power. Can't wait for tommorows London session.

Have a nice one.

Jupiter.
Be careful trading news. It rarely/(doesn't for me) fits well with TA. If somethings seems too obvious (i.e big rumors that some important US macro-numbers will be superb), be very skeptical. No-one is giving away free money and remember that the probability for the masses of people to be dead wrong is always very high. Don't follow the crowd ! Make your own conclusion or else you will most likely never learn yourself.

And try to figure out what to do when price gets there instead of where price will go. Tell me when you "see the light" understanding that sentence
Measure twice, cut once
  • #1,700
  • May 13, 2008 6:18pm May 13, 2008 6:18pm
Quoting Dcb
I have stayed away from G/U because it is so volatile. This volatility is really seen on the M30 chart. I doesn't move in any direction for any length of time. I guess that would be ideal for a short term trader. I have even stayed away from the Yen. I am focusing more right more on the E/U and the U/C. I am expecting tomorrow to be a challenging London session for the G/U.
That's what I'm seeing, too choppy price.

Quoting Dcb
Hello aediaz
We have missed you, and your insight of our chart analysis. I hope we see you tomorrow.
Sorry for not being able to give fresh updates and responses lately. Feel free to skip this few sentence of moaning regarding my "status";

This last few years have been very demanding considering the time I have spent in front of my computer rarely less than 14 hours a day (bu-huu right lol). Unfortunately, not without side-effects regarding my closest friends/girlfriend/family. So increased social time means decreased forex time which feels right for now. Never let any financial markets get above your closest. My rule nr 1
Measure twice, cut once
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