Reading Charts in Real Time

Marko23 · #**3711** 01-26-2010, 03:01 AM

EUR/USD Long chance

Triggered

B/E

Marko23 · #**3712** 01-26-2010, 03:45 AM

EUR/USD next Long chance

B/E

Out at 106, waiting.

Gabe2004 · #**3713** 01-26-2010, 06:10 AM

Originally Posted by thalestrader

I didn't, but my daughter got short the EURJPY at 128.206 with a 127.00 profit target just before she went to bed ... she'll be very happy in the morning.

Best Wishes,

Thales

Good/Happy morning indeeed.

Could you tell us what was /would be the reason to short at that level?

Thanks

Gabe

PS I could not draw a line @ 128.206 .This is the closest my platform would allow.

Beachtrader · #**3714** 01-26-2010, 06:37 AM

Hello Thales,

Would I be correct in my understanding this as a potential '3 drives to a bottom'?

Reading Charts in Real Time-gbpusd-100126-m5e.jpg

With kind regards
BT

BlowFish · #**3715** 01-26-2010, 06:37 AM

Originally Posted by Marko23

Thanks for supporting Thales' hint.

Currently these wedges fascinate me. I overlooked them far too often.

They are an interesting structure. The Wolf Wave thread hear on TL may be of passing interest (also written about in a chapter of Raschke and Connors Street Smarts). That particular chapter can be found on the interwebz for download. These deal with wedges and projecting a target through a couple of points in the wedges.

The temptation of course is to try and consider too many patterns/structures and end up confusing oneself. Having said that I am sure it is possible to put together a couple of simple robust strategies ased on wedges. I guess the important thing is to note the loss of momentum and narrowing of range.

Edit: Actually when TT first introduced the 'falling wedge after a declining market' (way back when he had Elliot for weekend reading) I thought I should dust off Edwards & Magee, that is my recollection of first being introduced to them.

Beachtrader · #**3716** 01-26-2010, 07:13 AM

Originally Posted by Beachtrader

Hello Thales,

Would I be correct in my understanding this as a potential '3 drives to a bottom'?

Attachment 18325

With kind regards
BT

Possibly setting up for a reversal.

Reading Charts in Real Time-gbpusd-100126-m5g.jpg

All the best
BT

thalestrader · #**3717** 01-26-2010, 07:17 AM

Originally Posted by forrestang

... 2) Price will stop you in, barely nic your entry so to speak before immediately moving away from your entry and heading towards the last swing point or your ISL...
My question was about #2 mainly. In that what is it that tells you to exit a position prior to your initial stop being hit when price just nics your entry? Is it just a feeling, a sense of momentum going against you?

For a short, the low tick after I am stopped in is a Low. Price then bounces from that Low and rallies 3-4 ticks above entry. That is a High. Price then comes down and retests the low. That is a Higher Low. I am out if price comes back up to make a Higher High. This usually all happens on the same "bar." Bars have nothing to do with it - Highs, Lows, Higher Highs and Higher Lows, Lower Lows and Lower Highs. I am very consistent.

Best Wishes,

Thales

thalestrader · #**3718** 01-26-2010, 07:25 AM

Originally Posted by Gabe2004

... Could you tell us what was /would be the reason to short at that level? ... I could not draw a line @ 128.206 .This is the closest my platform would allow.

Sure Gabe. And what I have doen here is I went right to my daughter's computer and her Ninjatrader chart to show what she did. The dotted red lines are hers. The text explanations, of course, I just added this morning for your benefit. The 128.206 level was based upoon the data she was being fed by FXCM, and so your data is likely off by a few pips or so. I think the charts will be self-explanatory. Again, she had the dotted red lines on her chart as early as yesterday morning before school. Everything else, including the blue entry, red stop loss, and green profit target lines I put on her chart this morning.

Thales's Daughter's Four Step Process For Short Sales

I hope that helps.

Best Wishes,

Thales

thalestrader · #**3719** 01-26-2010, 07:35 AM

Originally Posted by Beachtrader

Would I be correct in my understanding this as a potential '3 drives to a bottom'?

Hi Beachtrader,

Looks like it still needs the third push down.

Best Wishes,

Thales

Gabe2004 · #**3720** 01-26-2010, 07:39 AM

Originally Posted by thalestrader

Thales's Daughter's Four Step Process For Short Sales

I would have never have thought to enter a trade based on a H-L-LH of only 2 bars but this is someting to think about.
I remember seeing this area last night and I went down to the 5min to see if there is a valid sequence but there were none.

Thanks for the charts and explanations.

Gabe