Price Action and Trading Discussion

Hi Jibjib,

Yes that can be the main problem with moving averages. The longer term ones can take quite some time to react to the price movement. The shorter the MA then obviously the more reactive they will be to price, but also more false movement. Jibjib I am sure you will optimise your exit criteria as time goes by, trial and error and forward trading are the only ways that you will find out what does and doesnt work and that all takes time, sometimes months and months.

The problem some traders have is they try something out, they hit a drawdown period and take some losses, and then they have the mindset of hey this doesnt work, so they start the search for something new that does, come to the conclusion after a drawdown period and the cycle continues, im sure that may sound familiar to more than a few traders out there ?

I do like moving averages but again I tend to use them purely for directional purposes only, PA will be my entry and exit. A simple trend line will do the same thing on a chart for direction but MA's can make it simply more visual if you dont mind them being on your chart.

Every trader will find what works best for them, the battle can be like you say jibjib is staying around long enough. Too many try and master everything at once and go nowhere. The one thing I would say is find something that works for you and stick with it for little while. You only need to master one aspect, and if that can make profit for you on a constant and repetitive basis then that one aspect is all you need along with a little patience and discipline of course

Once you believe that you have mastered that one aspect 100% then look to add another tool to your trading toolbox.

I think I have said this numerous times before, but when I started out trading one of my trainers once said to me "keep it simple, its the simple things that work the best" and like every aspiring trader I went off to learn as much as I could about all things trading including every indicator known to the trading world, looking for that elusive combination of what may work.

And what do you know..... I eventually came to the conclusion, that yes... indeed it is .... the simple things that work the best.

Keep it simple, and do what works for you.

very nice aducational posts DW.

AUDUSD

seems like retesting the previous support. wait to see what the price will do from the current level. in case of a pullback could be good short entry.

How was your week folks? Any chart for next week?

hi all

USDCAD

after retesting the weekly support now closed above 1.0000. i wait for confirmation in the daily for a long entry.

When talking about price action, ready indicators may be useless. the visual detection of S & R & patterns like triangles is the key to be a good trader (more than 90 % of trading actions are done in S & R levels)

Hi David,

Indeed. In particular the S&R

Hi dboy,

Unfortunately I didnt get too much of chance to check out weekly etc before the start of trade today, but will get a look at them over the next hour or so and check out whats going on.

This is one of the setup am following just trigger AUDUSD daily time frame short trade

hi DARK WOLF and all.

EURNZD

what do you say about this one?

Hi Tiwa,

I have been watching this chart also, but I opted for the AUDNZD trade that I took, which at this point in time really hasnt done too much for me.

Hi Haimber,

I am still watching this one also, but still just that at the moment, waiting for something to give as its in a bit of a congested area at the moment.

all the yen pairs stalls at the moment in strong S&R levels. i'm out for a while until we'll get a clear picture.

USD/JPY WEEKLY CHART

THERE IS A BIG RESISTANCE AT 94.80
WE CAN SEE A RETRACEMENT TO THE 88.50

http://i49.tinypic.com/22ddmg.gif





GBP/USD WEEKLY CHART

WE CAN SEE A BIG RISING TO THE 1.64 AGAIN.

http://i46.tinypic.com/rw42zk.gif


FIRST TARGET: 1.5880 ( TWO WEEKS LATER)
SECOND TARGET: 1.6170 (FIVE WEEKS LATER)
THIRD TARGET: 1.6350 (SIX WEEKS LATER)

GL

Hi
You are talking about GBPUSD returning to 1.64!!!!!!!!
How can you come to this conclusion?
Be glad if you kindly express your idea clearly cause it's so weird!!!!

Closed this one out on the EURAUD for small profit, with it going nowhere at the moment and holding in a bit of congestion around the RN area, thought better to close it out than risk a potential turn around in direction after holding it for over a week and doing nothing.

GBPUSD Daily:

We have seen the RN area reached by price.

This will be a pivotal area on this chart.

By squashing the chart up a little more you can see the importance of this area.

Not only that, have a look at how price has reacted at other RN areas on the chart. Good areas to look for on any chart.

Hi David,

UJ certainly has gone a long way without a signifcatnt retracement so it is highly likely at some point, so will be interesting to see how it plays out with the current weakness in the yen pairs.

Cable is without doubt at a key area on the chart. There is an overall larger range in play on the chart so the move back up is certainly a possiblity.
I guess we need to wait and see what develps at this area. If price can break below the 1.5500 area and hold this may be a sign of more weakness.

Hi Haimber,

Likely to be a good plan there

AUDUSD Daily:

Watching this area to see what takes place.

yea, thats the right time to plan a nice trade there....

i also closed my euraud trade. its in a range. waiting for another opportunity to jump in again.

GBPUSD

we are in key level at the moment. note that the price broke the long term TL. we might see some struggle and pullback to the TL again but the overall outlook at the moment is bearish. we have to trade what we see not what we think.