{quote} I would avoid going long by looking at the MBL line. We are still in downtrend because both green/red are below MBL and 50 level. But we will leave the final reply for Phx62. Thanks, hoperich
{quote} Hoperich is correct.....based on the MBL being above the TSL & RSI, we should be looking for short trades with the understanding that the TDI is in the oversold area and will be breaking out at some time. The chart and analysis I posted was just to show the possibilities, not necessarily what trades I would have taken. Actually, in the area you are looking at, I would have entered a short trade at LO as a continuation of the downtrend. Price would have moved down and then reversed and I would have been stopped out at BE by the blue candle...
Thanks hoperich & Phx662. Education here is priceless.
Oh what EA trade management are you using Phx62?
{quote} If I may add my two cents to your question, in that particular area where you would've gone long, there had already been a 180-200 pip strong down move which would require more confirmation for a reversal. Think of the athletics where the sprinters can't stop at the finish line, they keep running until they can come to a full stop. Others also call this a 'wash out' of the first come buyers. Also the 10 ema that I use was pointing sharply down. For me the first place where I would look for a reversal had been at the greenline area which...
Also you mentioned the last weeks previous low. So i expect when breaking this low, the market would retest this level again before continuing (either up or down). We'll need to look for more confirmations to support a reversal and in this case, the signals are not strong enough to signal a reversal, such as the MBL and the EMA lines. Hope this analysis is correct.
