A simple price action approach

[NoDoji]

Quote from dv4632:

Had one trade (long) on the euro as noted. I didn't hold until the target was made - I exited when it looked like price was reversing at the previous double top. I actually almost skipped the trade because of that double top.

I thought about going long just before 8:00. When price broke out above the upper rail around 7:00 I drew in a steeper up channel in case price was really going to take off. When price came to the lower rail of that new channel it was also at a potential R becomes S level from the triple tops above 1.4380. But I didn't take the long due to the last top being a double top.

So both trades were coming after double tops, and I got lucky and picked the one that worked and skipped the one that didn't. It could just have easily been the other way around. At some point I'll have to decide whether a double-top on the prior high is reason to skip a long entry.

I would've found it difficult to go long where you did, but if I did, I'd have exited exactly where you did. I really like the pullback to the 20 EMA that found support at earlier congestion resistance. That pullback is very clean, by which I mean the pullback bars are small and their footprint indicates buyers are nibbling on the way down, very orderly. It's worth a long entry on either a pullback bar break off the 20, or a break of 6:30 resistance, targeting a channel breakout (because of the much higher low).

The place where you have the ? is as iffy as your initial long (to me) because of how the double top sells off so quickly through previous support. I normally wait for a "second mouse" entry when I see conflicting signals like that. So I'd want to see a second test of the 20 EMA and a break back upside. That doesn't happen at first, price breaks downside, but not much before breaking back up through the 20 EMA. I would've taken a long position on the break back up through the 20 EMA, a break through the high of that 5th bar from your ? (the little red bar). Price broke there with no conviction and after a couple bars of stagnation, I would've scratched the long and either reversed short or waited for more clarity.

 

[JoshDance]

Quote from moonmist:

Hi,

You may like to add the following bullish trend line to your chart.

Thanks moonmist--after drawing this by looking only at the lows from which it was drawn and covering up where you show it lining up, I would have to say that it lines up well as you show it only really in hindsight. I've connected it and made it as close as I can without cheating, and this chart is what I got. In contrast, the lower channel line shown was made by connecting the two highs, and lines up perfectly without modification. To make it more clear, I used the 1m chart.

 

[cornix]

Simple price action trade from today. Euro tested the resistance, failed to stay above it, so I went short.

 

[cornix]

...and another one. Little 5m EURUSD channel formed below the previously broken bigger time frame trendline (file attached in the next post). But action was not perfect so I waited for an extra confirmation before entering and had to sit through some chop after, but turned out not bad.

 

[cornix]

Bigger timeframe chart for my previous post in this thread.

 

[NoDoji]

This is a test:

 

[macattack]

Quote from themadman:

Horizontal lines got some uses at the proper spots but the dynamic diagonals are far superior the comparison is not even close, the precision is not even close, the occurance is not even close.

Takes a few more years of price action to actually visualize it.

Less 20 EMA more lines

THE Madman

What are dynamic diagonals?

I've heard mention before that the diagonal lines are very good...............are they the same thing as a trendlines or different?

 

[dv4632]

Quote from NoDoji:

This is a test:

I'll take a stab...

I'd have considered a long on the 6:20 bar, after the pullback off a new high.

Failed upside breakout on the 6:45 bar. I see high volume there but don't know if it was buying or selling.

I'd be neutral as long as price is in this 94.70-95.10 range. I wouldn't take any action here, nor would I have any plans to.

I'm sticking mainly to channels/TLs for now, so I wouldn't be trying to game anything at the right edge here.

 

[wolfpacker]

Quote from NoDoji:

This is a test:

Looks like to me buyers buying on weakness and sellers selling on strength.... No real trend established short of a slight up channel.

I would be flat and not looking to take a move after a trend is established.

Wolf

 

[dv4632]

Here's what I had in the euro for today.

First short stopped out immediately. Second and third had small gains taken on the way back up. Fourth was stopped immediately. The first long was when I thought the trend might be reversing (higher lows on blue TL) and the second long was a good one.