Reading Charts in Real Time

[sw9 10]

Hi Steve,

 

I see no higher TF support there at 1.6666 area. If you are referring to the high made in late OCT, keep in mind it did blow through that zone 5 times since this time it 'working'....

 

 

 

Yea, my actual S line is at 1.6660, and although it has traded through a couple times over the past week, it has still served as S and R many times, at least while looking at the TF in discussion.

 

Steve

[thalestrader 14]

Potential GU SHORT trade.

 

Gabe

 

How's it going for you, Gabe?

 

Best Wishes,

 

Thales

[johnjohn1hew 10]

S/R levels can be short-term and long-term. Short-term s/r levels are more important for short-term trades or entries for longer term trades. This is because these levels are more recent and are usually visible at first glance. This is just my opinion though, so don't take it as something that it isn't.

Edited November 17, 2009 by johnjohn1hew

[forrestang 10]

If you were watching, did you see it as I did? Would you have taken it if you had seen it? Why or why not?

 

Best Wishes,

 

Thales

 

EDIT: PS In other words, do not focus on what happened after the trade triggered. Let's focus on what happened before the trade up to the moment of decision.

 

I don't think I would have been overly enthused about that trade if I were watching the G/U at that time? I can somewhat see that price is moving into a general area...... but to me that area looks like a bit of a chop zone?

 

Also there is a line in dark blue that I drew above that I 'may' have possible constructed if I where watching.

[thalestrader 14]

wrong thread. wrong thread. please delete me. sorry guys.

 

Too bad, I thought your post was quite appropriate given the recent discussion here.

 

Best Wishes,

 

Thales

[thalestrader 14]

I don't think I would have been overly enthused about that trade if I were watching the G/U at that time

 

What would you think about the EURJPY currently?

 

 

Best Wishes,

 

Thales

[MidKnight 12]

What would you think about the EURJPY currently?

 

 

Best Wishes,

 

Thales

 

I would be more enthusiastic about this one. However, I would be more curious as to why you are. The GU trade you were commenting on how the trend was of importance to the context, now in this case it doesn't seem to be coming into your context as the 15m trend is down (by my view).

 

All my best,

MK

[johnjohn1hew 10]

Here is my view of that GDP/USD trade that Thales posted several posts back. The dots mark possible long entries. Note that this is in hindsight.

[Gabe2004 10]

How's it going for you, Gabe?

 

Best Wishes,

 

Thales

 

I took the trade as planed but it started to go against me so I closed it for a 30 pip loss on the 3/3 (10 pip move).

I re- entered at the same price and after going in my favour, it is going against me again.

 

Gabe

[Gabe2004 10]

I took the trade as planed but it started to go against me so I closed it for a 30 pip loss on the 3/3 (10 pip move).

I re- entered at the same price and after going in my favour, it is going against me again.

 

Gabe

 

Took a long on UC. Same happened as with GU. Took a loss of 30 pips on 3/3 (10 pip move) and then re-entered in the same direction.

 

Gabe

[forrestang 10]

What would you think about the EURJPY currently?

 

 

Best Wishes,

 

Thales

 

I think it looks ok. I can see a bit of potential support it may be digging into based on a wider angle. Out of curiosity, has your outlook changed based on the picture I am posting? This is the picture of the E/J, I am reposting.

 

What do you think about the G/U for a long as I have on this picture.... if it puts in a HL. This is the 2nd picture.

 

----EDIT------

Added another picture, with better looking lines. I entered this trade prematurely for sure. But just throwing it up there.

Edited November 17, 2009 by forrestang

[Gabe2004 10]

What would you think about the EURJPY currently?

 

 

Best Wishes,

 

Thales

 

I would be hesitant to enter into a long position because of the immediate congestion (resistance) area at the level of entry.

I think this is the problem that MK was writing about but if he didn't I still have a problem with it.

[forrestang 10]

I would be hesitant to enter into a long position because of the immediate congestion (resistance) area at the level of entry.

I think this is the problem that MK was writing about but if he didn't I still have a problem with it.

 

Interesting outlook. Of course price could break this consolidation in either direction..... but I wonder if this current consolidation/chop could be struggling to make marginally lower lows.....i.e. Kiwi's '3 Indians?'

 

What do you think Gabe?

[Gabe2004 10]

I think it looks ok. I can see a bit of potential support it may be digging into based on a wider angle. Out of curiosity, has your outlook changed based on the picture I am posting? This is the picture of the E/J, I am reposting.

 

What do you think about the G/U for a long as I have on this picture.... if it puts in a HL. This is the 2nd picture.

 

 

 

I am refering to your EJ chart.

Wouldn't this be going into resistance?

 

Gabe

[MidKnight 12]

I would be hesitant to enter into a long position because of the immediate congestion (resistance) area at the level of entry.

I think this is the problem that MK was writing about but if he didn't I still have a problem with it.

 

Hi Gabe,

 

That must be a different problem This is the type of long I'd be keen on taking because of the bigger picture S/R. However, my results are poor. Maybe forrest's post above is correct in that it might be digging in.

 

I really don't know anymore.

 

With kind regards,

MK

[johnjohn1hew 10]

Trend is down.

 

Price is below resistance (prior support).

 

Could break up...

[Gabe2004 10]

Interesting outlook. Of course price could break this consolidation in either direction..... but I wonder if this current consolidation/chop could be struggling to make marginally lower lows.....i.e. Kiwi's '3 Indians?'

 

What do you think Gabe?

 

Now I am lost.

I thought that the idea is that the LH could be in the S/R zone but not the entry point and here your entry point is in the S/R aone.

 

Gabe

[johnjohn1hew 10]

Also, just to get some of my thoughts out there. Most of you guys are keeping a detailed journal of every single trade with a picture of the chart as well, right? I think that keeping track of where price was in relation to s/r levels and in which direction your trade was initiated in in relation to the trend, how much risk you took on, your PnL, your reasonings, etc. could help you make a detailed trading plan.

[forrestang 10]

Now I am lost.

I thought that the idea is that the LH could be in the S/R zone but not the entry point and here your entry point is in the S/R aone.

 

Gabe

 

I'm sorry, I'm confused as well;)

 

Are you referring to the outlook that Thales posted to show his example in the E/J.....

 

Or are you referring to the trade I jumped in in the G/U?

[Gabe2004 10]

Trend is down.

 

Price is below resistance (prior support).

 

Could break up...

 

So if price is below resistance, wouldn't it make sense for price to continue down as the path of least resistance?

Not that makes sense is any concern of the price action but if I would see a LH I would feel more comfortable to go short than long if I saw a HL.

 

Gabe

[forrestang 10]

Also, just to get some of my thoughts out there. Most of you guys are keeping a detailed journal of every single trade with a picture of the chart as well, right? I think that keeping track of where price was in relation to s/r levels and in which direction your trade was initiated in in relation to the trend, how much risk you took on, your PnL, your reasonings, etc. could help you make a detailed trading plan.

 

Excellent suggestion. I actually do keep one, actually several journals with pictures. I have one for FX and two others for other projects.

 

There is a template in my blog, which is simple and is just a word doc with a table of content links at the beginning. It's nothing fancy, just the way I keep track of my trades.

[johnjohn1hew 10]

I am assuming that price will go with the trend (down). It just crossed support so that is another signal of 'weakness'.

[Gabe2004 10]

Closed my GU short for another loss. This time 18 pips.

Also closed my UC long for a 3 pip loss.

Total losses for today 81 pips.

 

Gabe

[johnjohn1hew 10]

Maybe you're trading those pairs at the wrong time of day. People in USD and CAN are sleeping or going to bed soon. Not enough volatility to follow through on the setup? This is where a journal comes in handy.

[MidKnight 12]

Hi JohnJohn,

 

Yes, I have a journal. A few of my posts are my thoughts after reading through the journal entries. With regards to EJ, S/R is not a single price like you are describing it, but more like a zone, in my view. I would still consider EJ to be at support, but that is just my outlook.

 

With kind regards,

MK