torero

Amazing! I think only a few people use 78.6 and 21.4. I was introduced to this # by my mentor and it was very exiciting to watch. But it's true, they don't mean anything unless price action treat it with respect. So it's there but no telling if price action will pay attention to it or not. A correction is in order, I actually had expected the triangle pattern target at 9250 not 9350. I only set my stop loss when I stepped out for a while. So it was a positive surprise to find it was hitting 9350 and not 9250. I don't expect 2cents runs like this everyday in such a short time. So I'll take it as special christmas present.

Triangle target reached and taking profits here just as it bounced from 9350. I guess Tokyo wants to close out the weekend with a bang. I'll take it. Have a nice holidays all and see ya monday! Thanks again tex!

Thanks, tex, that means alot to me coming from a vet like yourself! I try to keep the lowest timeframe at 15min, I feel anything below that is noise, but I could be wrong. I feel getting in at quiet area is best (even in pullbacks) so 15min is fairly reasonable frame don't you think? I've been watching the triangle brewing and wasn't sure when it was going to pop but I figured London may push it higher seeing it only needs a little nudge with good volume to break it higher. Not bad for a beginner eh?! :0) I'm hoping the beginner luck will stay!!!

Long 9159, ascending triangle consolidation. Looking to target exit near 9250.

I would have to agree with kiwi on many points here. Most traders one time or another use TA, but it's more than TA that cause them to lose, namely psychological makeup that cannot keep them disciplined or consistent enough to find out if TA really works or not. Most also don't make a carefully laid out plan to test out their TA-based strategies to make sure they work or not. But I think the most important factor is that most don't know how to use TA properly. In the end, they interpret them to fit their beliefs, exactly as kiwi says, "wired incorrectly". This is the biggest hurdle to overcome, not TA itself.

Unfortunately not. Equivolume has been in the wishlist by many TS users for quite a while but as usual, TS shrugged it off. I ended up using SwingTracker just so I can use this for morning trade. I like it alot because it's very intuitive unlike the volume bars on the bottom of charts. Extremely useful if you ask me.

Robin, I honestly don't follow any after following a few myself. I can't recommend any since no system will ever fit your goals, financial circumstance and personality. Every trader has to find this and research each service to see if they fit what you're looking for. Example, if a service expects a trader to lose 3000$ on one trade when you can only 400$, that service won't fit your financial situation. For others with higher mental toughness to withstand such a high drawdown, they say it's great. See where I'm going? So each recommend from each person might not do justice unless you do your own research. Hope it helps as I probably didn't answer to the original question. Good luck.

I know the trend is the best way to make money but there are traders in futures who trade ranges. Is it sensible to trade ranges in forex?

Sister! You really got it going on!!! Watching your chart and post is a pure pleasure, shows me how good you are with sitting and watching! Gonna be there someday!

Nicely put. Since I'm still green behind the ears on forex I'll wait for experience take me in and not get caught up in the news trading. I think I did the right thing to take profit where I set my original target, so no regrets. It'll come another time. But this time from your advice, I'll watch closely for heavy news hour for clues to get in.

Looks like the breakout happened before the London open, it was a precursor to the move. I was already out before the BOE meeting. Guess I'm no good at trading news LOL!

I used to hear a claim that during the holidays in US, the Cable and Euro tend to run away a bit, is this true, tex?

My plans are usually to trade at or near support or resistance areas, these are where biases will appear one way or the other, and these areas are where high probability trades are at. So if you think about it, prices don't move to these areas throughout the day, only a few, so this is where I concentrate my time on finding opportunities. 2-3 trades is my max number of trades. Any more is overkill and trying hard to make the trade do something when there isn't anything there. Hope it makes sense.

Excellent analysis, tex! This will be very useful for me down the road. I finally closed out my long position waiting almost the entire day for it come back to 9000 to hit my target. Forex requires more sitting on one's hand more than any other instruments I've traded up til now. This is a really good test to the daytrader.

I have a question, it looks like Cable is stalling below 9000. It still shows higher lows but the Euro is showing lower highs, divergence. In your experience, do Cable and EURUSD correlate well or not?

I think one thing traders have to keep in mind is that in both markets, we trade on margin but more on forex than on futures (100:1 vs. 10:1). So when holding overnight in forex, the interest can get quite steep. Trading futures, there is no interest for holding, however long you want. So there is a disadvantage in forex if you leverage and borrowing high amount with holding the position a good while, your gains diminishes. In essence, if the market doesn't move, your account is diminishing due to interest fees. This is similar in options with time decay. Hope I made that clear.

I noticed that in forex, compared to futures, the trader has to have much much more patience in order to let the prices play itself out. I don't usually do overnight holds but in forex it's the only means to make big gains. I'm learning already! "know when to hold 'em and know when to fold 'em"!

Double-bottom objective met finally, I'm watching closely to close out this long.

We all have biases, even I do, but this bias must be objective, meaning the analysis from higher timeframes have given you the direction of the market, then you should approach from that bias, this is the crux of my trading plan. When I don't follow that bias, then I'll pay for not following my trading plan. But there levels that decided which bias you should have, a support or resistance areas where you know the bulls well take control and bears will take control. During the trading day, these areas should guide your bias, but these areas are where the bias will also change the bias in the higher timeframes.

I used to daytrade stocks but after a while, I got burned from keeping up with so many charts, screens, scans, alerts, on top of that the indices. To keep my homework down to the minimum I decided to trade one emini and my trading is much calmer and easier and stressless (this should be the epitome of the trading environment, not the screaming, hooting and hollering). Trading 1 emini takes less from my daily life and still maintain the income I get as with stocks. So the decision was much easier.

I'm still in. Let's see where the Asian market will take it. But the price action is so far bullish, as long as it doesn't go below 8840.

Looks like a breakout here. Looks like a pullback is there but not sure if the resistance above will be able to broken after Friday's push. I'm going long from the pullback and test the morning's high and see if it can take it higher.

Hi you have to click on in order to see this icon above the post editor, because the QUICK REPLY won't include these features to add in images. Hover over your image link after uploading, and copy that link (right click and select COPY LINK LOCATION or COPY SHORTCUT), then click on button and paste that link, then ok. Then you're done! Anyway, I'll guide you until you do it right;)

I wasn't expecting the big move either although the base was curling around in the 8855 area so I thought something was up. I pretty ignored the rest though since I dind't even see a pullback to get in comfortably. Next week! I must say that I've learned more last 2 weeks about forex than I have the entire last year, thanks to Raul's and your insight!

Hi All, If you're like me who prefer to view the charts directly on the post instead of wasting extra time to open another window or application to view an attachment from other members. Here's some instructions to help you post them so it can be easily seen. Help each do this to make the posting and reading experience much easier and nicer to do. Here are the instructions: 1) First upload your chart to the TL server. The button is located below the Text Box Editor, where "RapidShare" is seen. A window will pop up, this is where you upload your image file. 2) When upload is finished, close the window, and you're back to main browser again. Now, this is IMPORTANT, follow the images closely. Hover over to the recently uploaded file and right click your mouse to "Copy shortcut" or "Copy Link Location" if you're using Firefox. 3) Back to the Text Box Editor, click on this image button and a small dialog box will pop up, paste the shortcut into the box and 'OK'. See image below. Now you can finish your post with text or Submit. Voila!