Usually they are one in the same
A strategy that is a secret
- Thread starter forextrader1990
- Start date
Usually they are one in the same
"for all intensive purposes" it is "one AND the same"
A very smart computer makes the charts. I'm going to explain how the computer works.
Look at the three pictures.
When the price breaks a trend line, after a time-span, the price will come back to the break point.
The time-span can be short or very long. It often happens. About 95%.
You can check the past. You will find so many samples.
It happens in every time frames. 15M , H1 , H4 , Daily , Weekly. But H4 is the best.
Draw the trend lines from the tip of the bars.
Three examples:
True Trend Line
Look at the two pictures.
The first picture: False
Because the second peak is not below the first peak.
The second picture: True
The second peak is below the first peak.
Draw the trend lines from the tip of the bars.
The trend line should touch the first and second peaks. It’s so important. Some people don’t care about the second peak.
How to trade?
You should trade when the price comes back to the break point.It often happens. About 95%.
You need experience. Check the past to see more examples.
How to find the return points?
You can use Fibonacci for finding the return points.
Draw the Fibonacci from the start point of the trend line and end it at the highest or the lowest bar before the break point.
In these picture, the price has returned after touching the 161.80% or 61.80% of the Fibonacci.
Five examples:
First picture, many peaks, different frames different peaks too
Man, you got that BACKWARD.A very smart computer makes the charts. I'm going to explain how the computer works.
Look at the three pictures.
When the price breaks a trend line, after a time-span, the price will come back to the break point.
The time-span can be short or very long. It often happens. About 95%.
You can check the past. You will find so many samples.
It happens in every time frames. 15M , H1 , H4 , Daily , Weekly. But H4 is the best.
Draw the trend lines from the tip of the bars.
Three examples:
True Trend Line
Look at the two pictures.
The first picture: False
Because the second peak is not below the first peak.
The second picture: True
The second peak is below the first peak.
Draw the trend lines from the tip of the bars.
The trend line should touch the first and second peaks. It’s so important. Some people don’t care about the second peak.
How to trade?
You should trade when the price comes back to the break point.It often happens. About 95%.
You need experience. Check the past to see more examples.
How to find the return points?
You can use Fibonacci for finding the return points.
Draw the Fibonacci from the start point of the trend line and end it at the highest or the lowest bar before the break point.
In these picture, the price has returned after touching the 161.80% or 61.80% of the Fibonacci.
Five examples:
Prices return not to where it broke through the trendline, but to where the Support/Resistance and the Trendline are. If you look to the left of the chart, you would see that it coincides with one of the major support/resistance (or the trendlines).
I believe he is saying the same thing you are. But maybe I am mistaken. Would you mind posting a chart so I can better understand what you are saying?
decades ago, that was how I traded. That was how I drew those trend lines.
all the best mister.
What he says is not stupid, how many times they have bought, the price has returned, the stop has been touched and then continued in the right direction. Yes it is true that it is a pattern that is repeated over and over again and knowing it helps in the negotiation.
Sometimes when there is a break the price does not return so it is a good idea to enter with half the position and if you return, buy the other half to get an average price.