Tuesday 28 December 2010

€$ Tuesday 28th Dec......continued



Well that was quite a violent reaction from the RL! (as per previous post)
As you could see in the previous post i had a long position which was stopped out at B/E. Looking again you can see the RL to the right of price from a current fork that contains price and the confluence of both the long term RL at the top of the picture and the shorter term RL sloping down to the right of price was the catalyst (only visible in the 5 min chart due to glitch in the MQ4 custom indicator & object distortion). Price was very happy to trend sideways below the long term RL (but was unable to pass up through the R- line) until it reached the d-sloping RL
which triggered the fall. This is exactly the type of example of a reversal at ML's & RL's that i try to understand and look to see what signs were visible both in price action and the indicators to alert us to a possible reversal.

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