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Psych Levels, Pivots, and Trendlines - Resurrected

  • #1,281
  • Nov 7, 2008 4:19am Nov 7, 2008 4:19am
Just finished with this trades. The first trade is a buy after the 38.2% retacement at the confluence of a previous visual resistance level which was broken (becoming support) and the xx20 psyche level wherein a higher-swing low was formed. Bought after price crossed above the upper-shadow of the hammer. TP was placed and hit just below a visual resistance level. The second trade is another buy after price crossed above the upper-shadow of the bullish piercing candle at another higher-swing low which is also a 38.2% retracement. TP was missed by a point which was below MR1-1.5830. Pulled the plug after price hesitated at the xx20 psyche level.
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Life is a journey... So is trading.
  • #1,282
  • Nov 7, 2008 4:23am Nov 7, 2008 4:23am
BTW, using EV's Multiple Candle Blend Visualisation (good thing I remembered that), a bullish piercing candle formation which has 2 candles would be equivalent to a hammer. .. Am I right EV?
Life is a journey... So is trading.
  • #1,283
  • Nov 7, 2008 4:33am Nov 7, 2008 4:33am
Quoting fx1dr3r
BTW, using EV's Multiple Candle Blend Visualisation (good thing I remembered that), a bullish piercing candle formation which has 2 candles would be equivalent to a hammer. .. Am I right EV?
I'm glad you remembered the M.C.B.V., fx1. Shows you've been paying attention! However, you've lost me with the above example. Maybe you could elaborate a little? (It's my age, you know!)
  • #1,284
  • Nov 7, 2008 4:48am Nov 7, 2008 4:48am
Quoting eyevoltage
I'm glad you remembered the M.C.B.V., fx1. Shows you've been paying attention! However, you've lost me with the above example. Maybe you could elaborate a little? (It's my age, you know!)
In an ideal Hammer candle we would usually see a long lower-shadow, with the body above the 50% of the candle without an upper-shadow (or a small upper shadow). In an ideal bullish piercing pattern, like on the chart below, if we negate the bullish white candle from the bearish black candle, we would get a bearish or black-hammer candle.
Attached Image
Life is a journey... So is trading.
  • #1,285
  • Edited 5:21am Nov 7, 2008 5:08am | Edited 5:21am
Some really nice pull-backs on cable here, each one starting with a very bullish opening marabozu candle. From the first one, there's an equally strong pull-back, offering a great opportunity to buy right on the main Pivot line, after the doji. The second pull-back, after an even stronger marabozu, is a gradual "domed" shape, incorporating 2 spinning-tops and two dojis pulling back nicely to trigger another buying opportunity. The third marabozu is stopped dead on the xx.20 psych-line, and the following pull-back then results in a lower swing high, indicating that the strong move upwards could be coming to an end.
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  • #1,286
  • Nov 7, 2008 5:21am Nov 7, 2008 5:21am
Quoting fx1dr3r
In an ideal Hammer candle we would usually see a long lower-shadow, with the body above the 50% of the candle without an upper-shadow (or a small upper shadow). In an ideal bullish piercing pattern, like on the chart below, if we negate the bullish white candle from the bearish black candle, we would get a bearish or black-hammer candle.
Yes, I'm with you now. However, a bullish piercing pattern would always have 2 candles, and the dimensions would have to be spot on, otherwise it just wouldn't be a hammer. Which is probably why the experts say that the further a bullish candle moves into (pierces) the preceding candle, the stronger the indication of a reversal.
  • #1,287
  • Nov 7, 2008 5:56am Nov 7, 2008 5:56am
A quickish sort of trade initiated by a small harami candle indicated by the arrow. Entry was just under the close of the harami. Target was the main Pivot line, but I exited as price started retreating northwards. Note how, just before the harami pattern, there's a lovely hammer right on the xx.80 psych-line, giving a heads-up of a promising pull-back.
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  • #1,288
  • Nov 7, 2008 6:03am Nov 7, 2008 6:03am
Quoting eyevoltage
Some really nice pull-backs on cable here, each one starting with a very bullish opening marabozu candle. From the first one, there's an equally strong pull-back, offering a great opportunity to buy right on the main Pivot line, after the doji. The second pull-back, after an even stronger marabozu, is a gradual "domed" shape, incorporating 2 spinning-tops and two dojis pulling back nicely to trigger another buying opportunity. The third marabozu is stopped dead on the xx.20 psych-line, and the following pull-back then results in a lower swing high, indicating that the strong move upwards could be coming to an end.
Excellent analysis EV! Looked like a symmetrical triangle broke down in cable. It found a support at the psyche level-1.5700 then formed a hammer and might pull back. Let's see how this reacts with CP and the broken lower TL of the triangle.
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Life is a journey... So is trading.
  • #1,289
  • Nov 7, 2008 6:36am Nov 7, 2008 6:36am
This trade came about after a break of the line that had proved to be a strong support, but became a resistance line after the break downwards. Price reversed and provided a perfect long entry after breaking the line upwards. The midpoint line was a perfect target, seeing as it had proved such a strong recent resistance.
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  • #1,290
  • Nov 7, 2008 6:44am Nov 7, 2008 6:44am
Quoting eyevoltage
This trade came about after a break of the line that had proved to be a strong support, but became a resistance line after the break downwards. Price reversed and provided a perfect long entry after breaking the line upwards. The midpoint line was a perfect target, seeing as it had proved such a strong recent resistance.
Nice trade EV! Looks like we're on the same trade EV but different TF and analysis. .. I was looking at this as a higher swing low and a bounce off the rising TL. (sorry for the small chart, wanted to show the TL). Bought after price crossed above the inverted hammer/spinning top. TP was placed and hit below the confluence of psyche level-1.5800 and visual support.
Attached Image
Life is a journey... So is trading.
  • #1,291
  • Nov 7, 2008 7:00am Nov 7, 2008 7:00am
I've long felt that as a cross, GJ shows fewer classic candlestick patterns than the actual pairs themselves.

However, once in a while a nice one turns up....
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Trading Levels with WRBs
  • #1,292
  • Nov 7, 2008 7:12am Nov 7, 2008 7:12am
Quoting fx1dr3r
Nice trade EV! Looks like we're on the same trade EV but different TF and analysis. .. I was looking at this as a higher swing low and a bounce off the rising TL. (sorry for the small chart, wanted to show the TL). Bought after price crossed above the inverted hammer/spinning top. TP was placed and hit below the confluence of psyche level-1.5800 and visual support.
Spot on, mate. It's amazing sometimes how folks see things in different ways in this game, but always aiming for the same conclusion.
Nice trade.
  • #1,293
  • Nov 7, 2008 7:17am Nov 7, 2008 7:17am
Quoting Islander
I've long felt that as a cross, GJ shows fewer classic candlestick patterns than the actual pairs themselves.

However, once in a while a nice one turns up....
Would the three red lines I see on your chart develop into an Andrew's Pitchfork? I'm just asking because it's something I've never really seriously looked at, and you've piqued my curiosity!
  • #1,294
  • Nov 7, 2008 7:30am Nov 7, 2008 7:30am
Quoting eyevoltage
Would the three red lines I see on your chart develop into an Andrew's Pitchfork? I'm just asking because it's something I've never really seriously looked at, and you've piqued my curiosity!
As I remember it, the APF requires a central starting point, so I'd have to expand that chart to see if there was one. I agree that APFs are interesting..

This may help http://www.traderslog.com/andrews-pi...-indicator.htm

and this guy uses them and also Schiff lines---http://www.forexfactory.com/showthread.php?t=121778

In haste for NFP!

Edit:I plundered 50 pips on a spike trade....
Trading Levels with WRBs
  • #1,295
  • Nov 7, 2008 7:38am Nov 7, 2008 7:38am
and this.....http://www.ensignsoftware.com/tips/tradingtips86.htm
Trading Levels with WRBs
  • #1,296
  • Nov 7, 2008 7:48am Nov 7, 2008 7:48am
Thanks very much, Islander, for the links. I'll investigate them later, but for now, I've got to go.
Have a great weekend, guys.
Cheers
  • #1,297
  • Nov 7, 2008 7:51am Nov 7, 2008 7:51am
Quoting eyevoltage
Thanks very much, Islander, for the links. I'll investigate them later, but for now, I've got to go.
Have a great weekend, guys.
Cheers
Have a nice weekend EV! See you next week.
Life is a journey... So is trading.
  • #1,298
  • Edited 4:54am Nov 10, 2008 4:48am | Edited 4:54am
Here's a trade based on a bounce off the confluence of the rising TL and psyche level-1.5700, where cable made a higher swing low and a hammer. TP was placed below the falling TL at the xx80 psyche level. Notice that although there was a HSL, there was also a LSH which created the falling TL. So there's a possibility of a symmetrical triangle being formed if price bounces off the falling TL that's why I placed my TP there. It's not certain, but better safe than sorry.
Attached Image
Life is a journey... So is trading.
  • #1,299
  • Nov 10, 2008 4:59am Nov 10, 2008 4:59am
Quoting fx1dr3r
Here's a trade based on a bounce off the confluence of the rising TL and psyche level-1.5700, where cable made a higher swing low and a hammer. TP was placed below the falling TL at the xx80 psyche level. Notice that although there was a HSL, there was also a LSL which created the falling TL. So there's a possibility of a symmetrical triangle being formed if price bounces off the falling TL that's why I placed my TP there. It's not certain, but better safe than sorry.
Nice trade, fx1, and good morning to you.
Here's a fib trade just finished on the 15m eur/usd. After a retracement to the confluence formed by the xx.50 psych-line and the 34ema, I entered just above the high of the spinning-top. My target was the -23.6% fib and I rapidly jumped ship as soon as it touched.
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  • #1,300
  • Nov 10, 2008 5:02am Nov 10, 2008 5:02am
Quoting eyevoltage
Nice trade, fx1, and good morning to you.
Here's a fib trade just finished on the 15m eur/usd. After a retracement to the confluence formed by the xx.50 psych-line and the 34ema, I entered just above the high of the spinning-top. My target was the -23.6% fib and I rapidly jumped ship as soon as it touched.
Nice one EV! Good morning to you too.
Life is a journey... So is trading.
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