Tuesday 19 October 2010

USDX & Euro$- Has the 'vibe' has changed?






















A series of simple charts stripped back to basics with (little or) no indicators and only the Ensign charts with RL's. I put up a chart of the DX last night just before i went to bed because i was rather excited ( bit sad i know ) about the chart pattern of the DX where price touches the CL and then reverses. If i can remember correctly i think that Andrews recognised and taught this touch and reverse in his books/courses. Anyway here is another example from the grains a week or so back. In the Euro i have a vibe that we are on the way down BUT i am always impatient for price to confirm its newest intentions/trend and have ruined many a good trade by being an idiot and charging in to the market. This is why i now favour (or try to favour) only limit orders because i am so impulsive and market orders often makes it a constant challenge to stick to my trading plan. I am about to publish my second " Rules for a Reaction Line setup trade" which deals with the problem i have often had.....I have a good idea/high probability of knowing of where price is going and in many cases i am correct but i still manage to screw up the trade. Has this happened to you? I can only suggest that you read my opinion which has been crafted by experience and wiping out several trading account balances. It should be published on this blog this week.
Anyway in the chart below we have a failure in the purple up sloping fork ( & a bounce of the LMLP) and a failure in it's 'Mod Schiffed' equivalent in grey ( it looks like a touch but isn't and i have checked it in Ensign which is more reliable re the fork tool).
In the DX chart at the top you can see we will have a RT from price hitting the red UMLP but i have little doubt we are going higher as there is no CL touch in this obvious red fork and price could not penetrate below the black CL ( as it reversed off it last night)- so we wait for the DX to take out firstly the red UMLP and then the fun will start.

1 comment:

  1. I am trying to catch up with all your charts. Great stuff.

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