Hi Tunji,You sure did and thanks a lot.I need to start watching more closely on the pivot highs and lows with 2 candles on each side of the middle -that is very important. I'm looking at the aud/cad on demo just for practice learning this technique. Thanks again,Tex
[quote]
On the H4 chart (attached), the EURUSD is simply in an obvious up-trend: price keeps forming higher highs and higher lows. A trending market doesn’t get more beautiful than this. Price has broken the most recent swing high @ 1.4166 (which we’ve highlighted using the blue broken line) upward. From a day-trade perspective, this is a good sign supporting a Long trade. The green horizontal line @ 1.4062 highlights the most recent swing low, and as long as price stays above it–in the absence of any new and higher swing low – our bullish or upward bias remains intact.
Hi Tunji,
Thanks for your effort really and
enjoying all this. Few questions to ask,
1. Why 1.4062 be the most 'recent' swing low, referring to the chart, is b., a swing low to you?
2. How do u define swing high/low
Swing High- "3 bar combination, a bar preceded and succeeded by lower highs"
Swing Low- "3 bar combination, a bar preceded and succeeded by higher lows"
3. 'in the absence of any new and higher swing low...'
Should it be,' in the absence of any new and lower swing low'
Not trying to pick your mistake if any, just want to clarify doubts...
Cheers
On the H4 chart (attached), the EURUSD is simply in an obvious up-trend: price keeps forming higher highs and higher lows. A trending market doesn’t get more beautiful than this. Price has broken the most recent swing high @ 1.4166 (which we’ve highlighted using the blue broken line) upward. From a day-trade perspective, this is a good sign supporting a Long trade. The green horizontal line @ 1.4062 highlights the most recent swing low, and as long as price stays above it–in the absence of any new and higher swing low – our bullish or upward bias remains intact.
Hi Tunji,
Thanks for your effort really and
enjoying all this. Few questions to ask,
1. Why 1.4062 be the most 'recent' swing low, referring to the chart, is b., a swing low to you?
2. How do u define swing high/low
Swing High- "3 bar combination, a bar preceded and succeeded by lower highs"
Swing Low- "3 bar combination, a bar preceded and succeeded by higher lows"
3. 'in the absence of any new and higher swing low...'
Should it be,' in the absence of any new and lower swing low'
Not trying to pick your mistake if any, just want to clarify doubts...
Cheers
- #47
- Jul 21, 2009 9:45am Jul 21, 2009 9:45am
- Joined Jun 2006 | Status: Fx trader | 2,944 Posts
Being a fxtrader is not easy. Ones must working hard.
[quote=lefteye;2890361] Hi Lefteye, these are nice questions; thanks. A swing high is a bar/candle preceded and succeeded by two lower highs (vice versa for a swing low) – thanks to my mentors… .
I hope that answered the first and second questions?
For your third question: Yes! I meant “in the absence of any new and higher swing low” because once a new higher swing low is formed, the new higher swing low becomes the new level price would have to break downward to nullify our bullish bias.
Hope I answered your questions satisfactorily?
On the H4 chart [font=Arial](attached), the EURUSD is simply in an obvious up-trend: price keeps forming higher highs and higher lows. A trending market doesn’t get more beautiful than this. Price has broken the most recent swing high @ 1.4166 (which we’ve highlighted using the blue broken line) upward. From a day-trade perspective, this is a good sign supporting a Long trade. The green horizontal line @ 1.4062 highlights the most recent swing low, and as long as price stays above it–in...
.I hope that answered the first and second questions?
For your third question: Yes! I meant “in the absence of any new and higher swing low” because once a new higher swing low is formed, the new higher swing low becomes the new level price would have to break downward to nullify our bullish bias.
Hope I answered your questions satisfactorily?
Use fractal indicator to identify the swing. You can find in mt4 platform.
Good luck.
Lefteye, you could try Sriloba’s suggestion. I’ve seen a couple of colleagues use the fractal indicator, but, for now, I’m so used to identifying the high/lows with my own eyes
. But, make sure the fractal identifies high/lows based on what I explained; except you prefer it otherwise, which is all good – as long as it suits you. This is a striking resemblance to how i trade ABCD plus fib. Nice one Tunji.
I wont have to bother about starting a thread, am sure i'll be home here.
I'm looking AUDUSD. Daily bias is up, so also 4hr tf making hh and hl,
Presently watching 1hr tf to retrace at my fib levels (38.2-88.6) then wait for a reversal candle formation to signal me in.
Do you look at candle formations?
N.B. sorry i'm having problems posting charts on ff.
.Yes, I look at candle formations, but mainly on the Daily chart and above. Observations on the H4 chart and below are, more or less, fully mechanical.
D liberators, you’ll definitely be at home here. You’re welcome: let’s grow together
Yes, I look at candle formations, but mainly on the Daily chart and above. Observations on the H4 chart and below are, more or less, fully mechanical.
Good, i use them for entries among other things.
A good save from a bad trade without candles is AUDUSD of today retraced to form a LL on 1 hr
God's Love For You Is Sure Never You Doubt It
[quote=Tunji;2890777]
Hi Tunji,
Thanks for your time and some more questions in blue....
Could u pls arrange yr charts vertically...
.....
Based on my method, I placed my initial Stop Loss 2-pips below the most recent hourly swing low @ 1.4198 (please, where necessary, always factor in your broker’s spread)
I identified two potential reversal levels at:
fib 50% ret. @ 1.4237
fib 78.6% ret. @ 1.4215
What are yr criterias of choosing these levels beside R/R?
Are the any significant S/R levels beside the fibs confluence 1.4217 & 1.4215?
What is the line at 1.42128?
I placed a Limit Order @ 1.4215 (I decided not to factor my broker’s spread, but I don’t always disregard it)
Pls note that I don’t really like using the 50% fib. ret. level as the reward/risk ratio is always close to 1:1; and I prefer 2:1 and above (or, at least, close to 2:1)
With 3 lots, I exited first lot when price moved favorably by same amount risked, which was 19pips @ the 1.4234 level (which I’ve highlighted using the blue dashed line). Then, I moved my Stop Loss to 2pips below the level where price initially reversed (hope you can see where my Stop Loss is currently).
1.4206?
With that, my trade is already protected from loss (as in this case) or from maximum loss of 0.5% of my capital initially risked (as in other applicable cases)
At times, if the pips risked is close to 50pips or more, I take some profits before it gets to the amount of pips risked OR move my Stop Loss to break-even (honestly, this aspect is simply an area everybody has to handle in their own individual ways).
This is a bit lengthy, but I hope it helps.
Excellent job to me.
For anyone that finds this method helpful, and didn’t know much about it, it might take some time to fully settle into it, but I believe it’ll worth the time invested. Personally, though I’ve learnt a lot about it, I’m still learning every day.
NOTE: Currently, as I’m about posting this, I’ve been stopped out; but I’m happy I managed the trade well enough to protect myself from loss (I’m not always that fortunate). And I always remind myself that there’s always another trade.
Hi Tunji,
Thanks for your time and some more questions in blue....
Could u pls arrange yr charts vertically...
.....
Based on my method, I placed my initial Stop Loss 2-pips below the most recent hourly swing low @ 1.4198 (please, where necessary, always factor in your broker’s spread)
I identified two potential reversal levels at:
fib 50% ret. @ 1.4237
fib 78.6% ret. @ 1.4215
What are yr criterias of choosing these levels beside R/R?
Are the any significant S/R levels beside the fibs confluence 1.4217 & 1.4215?
What is the line at 1.42128?
I placed a Limit Order @ 1.4215 (I decided not to factor my broker’s spread, but I don’t always disregard it)
Pls note that I don’t really like using the 50% fib. ret. level as the reward/risk ratio is always close to 1:1; and I prefer 2:1 and above (or, at least, close to 2:1)
With 3 lots, I exited first lot when price moved favorably by same amount risked, which was 19pips @ the 1.4234 level (which I’ve highlighted using the blue dashed line). Then, I moved my Stop Loss to 2pips below the level where price initially reversed (hope you can see where my Stop Loss is currently).
1.4206?
With that, my trade is already protected from loss (as in this case) or from maximum loss of 0.5% of my capital initially risked (as in other applicable cases)
At times, if the pips risked is close to 50pips or more, I take some profits before it gets to the amount of pips risked OR move my Stop Loss to break-even (honestly, this aspect is simply an area everybody has to handle in their own individual ways).
This is a bit lengthy, but I hope it helps.
Excellent job to me.
For anyone that finds this method helpful, and didn’t know much about it, it might take some time to fully settle into it, but I believe it’ll worth the time invested. Personally, though I’ve learnt a lot about it, I’m still learning every day.
NOTE: Currently, as I’m about posting this, I’ve been stopped out; but I’m happy I managed the trade well enough to protect myself from loss (I’m not always that fortunate). And I always remind myself that there’s always another trade.