Thursday 7 April 2011

EurUsd+ news on Video 2 and Reaction line grids/webs

Below is recent EURUSD charts (before ECB rate decision) showing a series of RL/WL's emanating from forks of the last two important controlling swings. This gives me the best possible advantage showing support and resistance.These controlling swings are often the most impressive swing high and swing low pivots and can date back for a considerable time and invariably price will have left the original fork a long time ago.
It is obvious to me that each current bar/candle is the product of every previous bar/candle and that current price is an expression of past price activity. The longer i trade the more apparent it is to me that there is always one magic ingredient missing from any charts and that is the ability to determine/anticipate trends. Even with the best prepared chart in the world you still need directional movement with momentum to make money. This is ideally illustrated by the last 2 -3 days of the Soybean market where sideways cyclical movement has made it impossible for me to trade ( hence i have the time for this posting!) as price refuses to break out of its sideways range and yesterdays bean opening was a bloodbath ( see image)
If you look carefully you can see the current Soybean cyclical market -and yes, in case your wondering, i was stopped out twice before i left the office early to get my head together and lick my wounds. The reason i have not been posting recently is that i have been fully 'immersed' in the grains for several weeks and with great success until yesterday but there was no 'car-crash' scenario as i trade with tight stops but still the loss hurt the account balance as well as my pride but today is another day and a fresh start but i am taking a back seat until the 'Beans' show me the direction of the breakout as i am unsure and have no trade plan right now.
This afternoon i am recording the second in the series of my videos and will concentrate only drawing reaction line grids and will post it soon




















The difference between getting slaughtered by a market that whipsaws as in the Beans yesterday or the dream of a steady calm uptrend in Corn is vividly illustrated by these two charts. ( also note the RL working price down on Corn in the most recent few bars on the chart- FYI the horizontal dark red line at 772-75 is not a RL but is the previous all time high which has been touched a few hours ago in the european trading session).

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