Technical Trading Setups Journal

Quote from clightmarathon:

4H broke above the down trend line, and it is consolidating.
I see resistance in the daily, so I would not buy here, if I were trading the 4H tf, but wait for a pullback to 1.3100-1.3130.
This would change if there is a strong BO above Friday's high or a strong drop below the trendline.
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Good read but I can't comment more until I hear from achilles28. Even though the market has moved now his response will help me answer his question.

However, why not trade short and reverse if this is your read?
 
Quote from Xspurt:

Good read but I can't comment more until I hear from achilles28. Even though the market has moved now his response will help me answer his question.

However, why not trade short and reverse if this is your read?
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I had a short signal on the 1min, but it was at the low of the range 1.3160-1.3187. And I don't short the low of a range in an uptrend. Now the range broke down, and will enter my next short signal on the 1m.
 

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Quote from clightmarathon:

I had a short signal on the 1min, but it was at the low of the range 1.3160-1.3187. And I don't short the low of a range in an uptrend. Now the range broke down, and will enter my next short signal on the 1m.
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Interesting - push on with the development of your method so it catches up with and confirms your larger read at an earlier stage. The suggestions Cornix makes here will help.

That was a strong rejection top on the 30 min that Cornix type traders would be all over and if the read was lower as in your case, then you'd hold the strong hand.

Breaking the range would then have been a great confirmation. As I said good read, you want to capitalize more on that.
 
I was scalping the noisy base off the 1m chart until I saw it was primed for the move, so I called Trade of the Day in the room.

I had the top as the target and told the guys to read a book.
 

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Quote from jack411:

Hey Red,

Could you explain more on what you mean?
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You keep the old channel to determine if the breakout is for real or a head fake as backtests usually develop as important tellling points in the markets. These backtests can occur on the channel formation itself, it's horizontal breakout line point or old formations that you must monitor during the breakout phase.

You can not only create channels/lines off highs and lows, you can also create them off shoulders.

Notice what price did after it broke the downtrend channel, it did not resist at the second shoulder line test, on the contrary, it broke it, and then found support by turning diagonal resistance into diagonal support which is precisely why we meant to breakout and not create a head fake aka breakout failure.

I find horizontal lines less reliable in markets because the market moves in waves, therefore I prefer my support and resistance to be of the diagonal wavery nature.
 

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