Here is a chart on what I belive could be the wave pattern numbers.
I think that the waves in the red circle are apart of a "complex B wave". The complex wave B goes deap into wave analisys and I have only touched that scope of the lessons.
The trade though is based off my most basic system(short on failer of resistance and long on bounce of support) Allow me to explain this system as I have never done.
As you all know 80% or more fail at forex. That leaves a small % for me to be in. How do I get in there you ask? Glad you did. What does "ALL" trade systems tell you? The one thing they all say nomatter what the system? Never ever under no circumstance trade against the trend!!!! So this means most people follow this golden rule no matter what happens. They adapt there risk management so they can sustain losses while they wait for a trend. The market trends only what? I am not sure but its like 20% of the time. The rest of the time its in a range. The best way to trade this range involves trading against the trend. Its the most predictable. A retrace up can go unstopped. But the support that started the retrace is defined. You know you can enter 5 pips from that support, place s/l 15 the other side and your safe. Unless support breaks down and then you can reverse the position cause the break is significant. To trade with the trend you must enter at the top/bottom of the retrace. But the top isn't defined at all. Best I can do is look for a trend line to trade near. There is a trend line above this one too that could come into play but its over 100 pips away and the price may never get near it befor going down. I belive a barrier was hit near 1.1800. My last 3 trades that won went against the trend. Right now FXCM says bias is looking up. So The majority could be looking at eur longs now wich keeps me in the low % of the statistics. Its no secret that brokers and bankes trade against the general public. Wich would be against the trend. So what does a person do? Trade like banks do. Every time a price trends it meats a big barrier(usually the banks). When you see this this bounce/pullback off this barrier wait for a retest and enter as close to the high/low as you can and place s/l 30 the other side. The price then usually consilidated at this barrier for a couple of days while it makes attempts to break through. Each and every attempt you enter as close to the barrier as possible. You'll usually get 2-4 good trades befor the market breaks through or reverses. Then wait for another barrier. With practice you can easly get 2-4 wins for every one loss as demonstrated in my first month on here. If the market starts to trend recognise it and wait for an obvious barrier to form (usually will see a 50+ pip pullback when a certian round # like 50 or 100 is approached). Or you can trade the trend untill it looses momentom. RSI is good but I don't use stochs any more. I will still use the 7/10 cross as an indicater. But all you really need for this system is the price.
I examined my losses this last month and discovered that I had gotton away from my basics. It took me 2 weeks to realise I wasn't trading my system. Thats crazy. I don't know where my mind was.
Now back to the chart...
We are at the trend line now, I figured it would consolidate to it since it is sunday. About the time it touches the trend line should be about the same time its due to become volitile.
Dave
I think that the waves in the red circle are apart of a "complex B wave". The complex wave B goes deap into wave analisys and I have only touched that scope of the lessons.
The trade though is based off my most basic system(short on failer of resistance and long on bounce of support) Allow me to explain this system as I have never done.
As you all know 80% or more fail at forex. That leaves a small % for me to be in. How do I get in there you ask? Glad you did. What does "ALL" trade systems tell you? The one thing they all say nomatter what the system? Never ever under no circumstance trade against the trend!!!! So this means most people follow this golden rule no matter what happens. They adapt there risk management so they can sustain losses while they wait for a trend. The market trends only what? I am not sure but its like 20% of the time. The rest of the time its in a range. The best way to trade this range involves trading against the trend. Its the most predictable. A retrace up can go unstopped. But the support that started the retrace is defined. You know you can enter 5 pips from that support, place s/l 15 the other side and your safe. Unless support breaks down and then you can reverse the position cause the break is significant. To trade with the trend you must enter at the top/bottom of the retrace. But the top isn't defined at all. Best I can do is look for a trend line to trade near. There is a trend line above this one too that could come into play but its over 100 pips away and the price may never get near it befor going down. I belive a barrier was hit near 1.1800. My last 3 trades that won went against the trend. Right now FXCM says bias is looking up. So The majority could be looking at eur longs now wich keeps me in the low % of the statistics. Its no secret that brokers and bankes trade against the general public. Wich would be against the trend. So what does a person do? Trade like banks do. Every time a price trends it meats a big barrier(usually the banks). When you see this this bounce/pullback off this barrier wait for a retest and enter as close to the high/low as you can and place s/l 30 the other side. The price then usually consilidated at this barrier for a couple of days while it makes attempts to break through. Each and every attempt you enter as close to the barrier as possible. You'll usually get 2-4 good trades befor the market breaks through or reverses. Then wait for another barrier. With practice you can easly get 2-4 wins for every one loss as demonstrated in my first month on here. If the market starts to trend recognise it and wait for an obvious barrier to form (usually will see a 50+ pip pullback when a certian round # like 50 or 100 is approached). Or you can trade the trend untill it looses momentom. RSI is good but I don't use stochs any more. I will still use the 7/10 cross as an indicater. But all you really need for this system is the price.
I examined my losses this last month and discovered that I had gotton away from my basics. It took me 2 weeks to realise I wasn't trading my system. Thats crazy. I don't know where my mind was.
Now back to the chart...
We are at the trend line now, I figured it would consolidate to it since it is sunday. About the time it touches the trend line should be about the same time its due to become volitile.
Dave
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