A big problem with my technical analysis

Please first look at the yellow rectangle。If I sell at the right ellipse as macd divergence，it‘s a counter-trend deal，which may fail many times。
If I wait until the rectangle is broken down and the reversal pattern finish，the price will have already fallen too much。Nearly half of the overrall downtrend has been finished。
The same question puzzles me at the purple rectangle。Could you please help me?Thanks a lot!


http://hiphotos.baidu.com/microopera...4dd31b70f0.jpg

thats just trading - if your looking for a fail-safe solution your not going to find it. you are going to have to get used to working in a grey area of unknowns and then take your chances based upon the probability of something working.

I think you are asking the chart to tell you so much...


Best Regards,

Nader

i'm still a noob trader.. but i guess macd is best used with other indicators.

Divergences are only good as confirmation for price reversals.


Without knowing how you trade, and just looking at your chart you’ve posted and ignoring other considerations, a safer and more conservative entry would be entering on the first pullback after the yellow rectangle is broke down. That way the price would at least break the previous swing low, and you’d be entering near resistance.


Same thing with the blue rectangle. Try to wait until price breaks up through the resistance, and then you can enter on the first pullback near the level where previous resistance turns to support.


Use simple support/resistance to your advantage, it lets you enter in a higher probability zone while keeping stops relatively tight. Good luck.

The market makes many moves, repeatedly. We can have the luxury of choosing the ones we feel comfortable with - and just focus on trading those.

The 1st box would be where I'd look for an exit sell signal (rather than an entry sell signal) following my entry into the consistent uptrend shown in the green candles before the 1st box. By 'cherry-picking' my ideal move, first, and then synching my entry and exit signal indicators; I'd be happy to wait out inefficient sideways, volatile patterns, like those in the 2nd box...

Suzanne
Mind Power Magnetizes Market Profits!