Trade - Trend lines with S&R lines - Page 2

Moxy · #11 01-11-2008, 03:29 PM

Attached is a chart showing a possible trade setup that I am looking at.

Note the TARGET 1 and TARGET 2 boxes are for the 1-2-3 trade going up, not the one I am looking at going south.

Let's see how it goes...

mazdaz · #12 01-13-2008, 03:39 PM

Wow!! This is one of the best trading method/concept I have seen.

Moxy · #13 01-17-2008, 02:26 PM

You can see in the chart that price was in an area where Supply & Demand were in-balance between 212.98 and 213.55. After several hours at these levels all the demand dried up meaning there were many more sellers than buyers. As a result price broke sharply to the down side.

The theory of this trade is that when price returns to this previous area of equilibrium, the sellers will step in and provide a good move down.

The plan is to enter this trade with 3 lots. Have individual targets for the first 2 lots and let the 3rd lot ride as far ash as it can.

Entry: 212.98
Stop: 213.55 (57 pips)
Target 1: 212.42 (56 pips)
Target 2: 211.85 (113 pips)
Target 3: As much as possible with a stop at the first target area when the 2nd target area is meet.

Below is a 1-hr chart showing the trade setup.

Moxy · #14 02-01-2008, 10:26 AM

Thought I would add a few recorded webinar links to help explain the Supply/Demmand technique I have been Waffling on about

http://transcripts.fxstreet.com/2008/01/multiple-low-ri.html

https://ise.webex.com/ise/lsr.php?AT...C33BD7BEDCAEE7

Moxy · #15 02-01-2008, 11:32 AM

Yesterday the USDCAD had a fast move up after a long move down. Today price is moving back down to the area where the momentum started the up move showing that there was a Supply/Demand imbalance resulting in more buyers of USD/CAD than sellers.

I’m looking at an intra-day trade here based on the 30 minute charts. Price didn’t moved about 120 pips up yesterday from the initial thrust and I’m thinking there will be more buyers at the price level 0.9960.

Now if I took an entry at that price I don’t have the correct risk/reward for this type of trade as there could be some resistance around the 1.0004 price, so I am going to enter the market a little lower thus reducing my risk.
The chart explains things better

There is a good chance my order will not be filled because price may not reach my lower entry price before heading back to the resistance area.

If that’s the case then I’ll move on to the next setup

Note: This trade is against the overall down trend, which is not ideal. It's best to go with the flow. So this adds more risk

Summary:
Entry: 0.9957
Stop: 0.9920 (36 pips)
Target 1: 1.0004 (47 pips)
Target 2: 1.0026 (69 pips)

Moxy · #16 02-04-2008, 07:36 AM

Quick update on the trade above...

Price came down to my entry point at the same time of the NFP and true to form... I didn't get a fill from my broker, but anyway, checkout the chart and you will see that both targets were hit perfectly.

With the NFP data coming out I didn't think the trade would work out as well as it did, but the technicals prevailed... Yeah !!!

moeharoon · #17 04-06-2008, 09:40 PM

Quick lession learned... I had opened a short position on GBP/USD 1.9935 on Friday and placed my stop @ 1.9950. While my trading site is not open for trading, the price has gone above the stop price, that means I will get stopped out at 1.9960 (current price). lesson learned NEVER CARRY OVER POSITION FROM PREVIOUS WEEK!