I agree on chart 2, it was an uptrend and I should not have sold unless I was absolutely sure this was a top. Therefore I waited... several bars formed around what was a resistance line the day before so that supported my hypothesis. Than I saw three (!) spikes on high volume ending below the line, for me that was triple confirmation... on what basis would you place a short entry? Any suggestions are very welcome, it doesn't matter if you're not a lifetime trader or relatively new to this "game", so am I.
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Trouble interpreting price/volume/support/resistance
- Thread starter abxs
- Start date
Quote from billp:
Other charts
You ask questions as to why target profit is not achieved or why the direction you are hoping for did not materialise.
Answer: There is resistance/support overhead. For eg in your last chart, there was a previous support that turned out to be the resistance. That's why your target was not achieved
Hope this helps
This I find not really a very good argument, as I can give you examples where it does form a W-bottom or a double/triple bottom and than rallies up... I'm trying to find the key to identifying on which points it might go up hard and on which points it might fade up and then move further down... what kind of tools do you use (eg I don't use indicators)...
No, second top on lower volume is usually viewed as sign of weakness.Quote from abxs:
Indeed, the second top is noticed by a lower volume. But what's making me confused is that there are so many ways to interpret this... like after the first top it didn't hit the supoprt line any more. for me: a strong signal, right?
... I am trying to hard at a perfect entry or what?
Definitely, nothing will tell exactly where to enter (and to exit). Try a different (longer) time frame additionally.
You have to take into account time of day - during noon moves are much smaller - and impending news releases.
14:30 US GDP and 15:45 Univ of Michigan Sentiment Indicator.
Usually, but not always, markets dry up before such releases. Though the last months, since being released on a subscriptions bases, the Michi does no longer seem to be a strong market mover.
Quote from BKuerbs:
Usually, but not always, markets dry up before such releases. Though the last months, since being released on a subscriptions bases, the Michi does no longer seem to be a strong market mover.
I agree, I've noticed this also. Usually I stay away from the market because I don't want it to gap up/down in the wrong direction... Other times when the news has less impact, I enter at a zone or triangle. Do you actually trade FDAX too?
I meant "now" when I started writing the email, but I knew by the time I posted it would look bad.
I decided to punch out of my hypothetical fly by the seat of my pants paper trade at a 5651 before the 8:30 news.
Have a look at K200, it reacts very well to this sort of support/ resistance levels, not to mention that it trades like a hummingbird on cocaine
I decided to punch out of my hypothetical fly by the seat of my pants paper trade at a 5651 before the 8:30 news.
Have a look at K200, it reacts very well to this sort of support/ resistance levels, not to mention that it trades like a hummingbird on cocaine
Quote from zf trader:
I meant "now" when I started writing the email, but I knew by the time I posted it would look bad.
I decided to punch out of my hypothetical fly by the seat of my pants paper trade at a 5651 before the 8:30 news.
Have a look at K200, it reacts very well to this sort of support/ resistance levels, not to mention that it trades like a hummingbird on cocaine
Ok, then I was right after all. I would have taken an entry there too. But with news coming up I expected price not to move around to much so I didn't take it. If you see the upmove at 8:30 (or 14:30 localtime) ... guess I'm lucky I stayed out...