DislikedOK, Will gave some valuable information in his previous post. As you can see, things are relative to what is happening at the time. You can mark off a level, but there are variables like Will mentions. How price is moving to a level, how price reacts to the level, is price trending, are we at a potential swing level, etc. In addition, larger time frames impacts what plays out on the smaller time frames. News and so forth can destroy the soundest technical setups. The list goes on.
In saying all that, you do need to start somewhere. You need a...Ignored
Trading with Deadly Accuracy
- #2,586
- Nov 19, 2012 7:32pm Nov 19, 2012 7:32pm
- Joined Nov 2012 | Status: Trader | 13,922 Posts
The More You Learn, The More You Earn.....
- #2,587
- Nov 20, 2012 1:43pm Nov 20, 2012 1:43pm
OK, Will gave some valuable information in his previous post. As you can see, things are relative to what is happening at the time. You can mark off a level, but there are variables like Will mentions. How price is moving to a level, how price reacts to the level, is price trending, are we at a potential swing level, etc. In addition, larger time frames impacts what plays out on the smaller time frames. News and so forth can destroy the soundest technical setups. The list goes on.
In saying all that, you do need to start somewhere. You need a...
- #2,588
- Nov 20, 2012 4:29pm Nov 20, 2012 4:29pm
Your posts are great! Keep going pls
Trend lines are so subjective, its more an art than a science. As you can draw many trend lines, which ones are usable for providing a way to enter the market? Are there ways to qualify a trend line as usable?
Red Pirate,
Re TL, SR Walls etc. Ive put a chart up that shows 3 ways that I sometimes like to draw lines. As Darren has already mentioned how subjective it can be when drawing these kind of lines. What I would like to add is to take maybe 1 or 2 methods and plot them on as many charts as possible to understand how they work and when they work. I know it can be very overwhelming having so many ways to plot lines on a chart but if you master a couple ways you will be able to be prepared ahead of time to be able to play the line if price plays out the way you like it when it approaches the line rather than have lots of lines on a chart and confusing yourself on what line to use to define risk.
With your CADJPY chart earlier your line looks good and we could have an overthrow in which case you would not expect price to break back above the line. I have marked levels if price falls where we could potentially expect buyers to come back in. This can be a very well defined risk trade but also is a counter trend trade so you have to decide whether or not you like to play. Dont forget as Will always says "when price is rising think where can i buy and when its falling think where can i sell"
Re TL, SR Walls etc. Ive put a chart up that shows 3 ways that I sometimes like to draw lines. As Darren has already mentioned how subjective it can be when drawing these kind of lines. What I would like to add is to take maybe 1 or 2 methods and plot them on as many charts as possible to understand how they work and when they work. I know it can be very overwhelming having so many ways to plot lines on a chart but if you master a couple ways you will be able to be prepared ahead of time to be able to play the line if price plays out the way you like it when it approaches the line rather than have lots of lines on a chart and confusing yourself on what line to use to define risk.
With your CADJPY chart earlier your line looks good and we could have an overthrow in which case you would not expect price to break back above the line. I have marked levels if price falls where we could potentially expect buyers to come back in. This can be a very well defined risk trade but also is a counter trend trade so you have to decide whether or not you like to play. Dont forget as Will always says "when price is rising think where can i buy and when its falling think where can i sell"
