[quote=yonnie;2382159]always interested in other views of the market...............
shorting below the midway point of this bracket..........do you mean you would go short below 50% of the 1.23-1.34 range and why there?[/quote
Shorting below the midpoint would mean that you now have more resistance above than you have support below. IMO It's still a lousy place to short and you'll likely get chopped in the chop if you are trading from the wrong timeframe, because it's impossible to tell which resitance or support level is going to hold because there are so many of them and you don't know who is active. So, if you trade in this area and your stop is 30-50 ticks and you are in the trade for 10-20 minutes and it hasn't gone your way yet, then you are just waiting for the "white noise" of the market to take you out. The worst part is that it will only go 5-10 ticks past your stop and resume in the original direction and piss you off.
I would rather short at around the 1.34 area which whould essentially be a breakout of the bracket area to the upside, but we are in a down trend and there is resistance above 1.34 so a short would be anticipating a bracket breakout failure and then have a good shot at it eventually traversing the entire bracket area. There's a whole line of reasoning of why there is a good chance that it will go all the way to the other side of the bracket area at that point.
Or, wait until we get to the bottom of the bracket and see if we are ready to breakout down. There is really no support below, only shadows of support which will provide a reaction here and there which will feel and look like support, but it will not hold. We need to make new support. 1.15-1.18 would seem like a nice round area to go take a look see. But who knows. In a week we may be testing the upper edge of the resistance level at around 1.37 and wondering if that will hold. Think of how boring this would be if we really knew what was going to happen.
shorting below the midway point of this bracket..........do you mean you would go short below 50% of the 1.23-1.34 range and why there?[/quote
Shorting below the midpoint would mean that you now have more resistance above than you have support below. IMO It's still a lousy place to short and you'll likely get chopped in the chop if you are trading from the wrong timeframe, because it's impossible to tell which resitance or support level is going to hold because there are so many of them and you don't know who is active. So, if you trade in this area and your stop is 30-50 ticks and you are in the trade for 10-20 minutes and it hasn't gone your way yet, then you are just waiting for the "white noise" of the market to take you out. The worst part is that it will only go 5-10 ticks past your stop and resume in the original direction and piss you off.
I would rather short at around the 1.34 area which whould essentially be a breakout of the bracket area to the upside, but we are in a down trend and there is resistance above 1.34 so a short would be anticipating a bracket breakout failure and then have a good shot at it eventually traversing the entire bracket area. There's a whole line of reasoning of why there is a good chance that it will go all the way to the other side of the bracket area at that point.
Or, wait until we get to the bottom of the bracket and see if we are ready to breakout down. There is really no support below, only shadows of support which will provide a reaction here and there which will feel and look like support, but it will not hold. We need to make new support. 1.15-1.18 would seem like a nice round area to go take a look see. But who knows. In a week we may be testing the upper edge of the resistance level at around 1.37 and wondering if that will hold. Think of how boring this would be if we really knew what was going to happen.
I can trade, make money and have a life away from the computer. Jaz
) but I really haven't been able to find much on entry TF's.
