Technical Templates

[speedbump]

nice going sarah!
you certainly grabbed the value entry on that one - push it till it doesn't want to go any further.
when it's done, it'll let us know.

if every bet is executed along those lines your pnl will look very healthy at the end of the year

[visualxray]

When prices are in bid mode or demand based (trading from the long side) it will be supported on pullbacks which do not violate the prior higher low.
When prices are in offer mode or supply based (trading from the short side) it will be supported on pullbacks which do not violate the prior lower high.

That simple & logical sequence is all the background information you need in order to begin preparing to engage with the market either on an intraday basis or via a slightly more medium term objective.

Totally agree. It's all about absorbing minimal risk.
Positioning oneself on the correct side of the momentum eliminates low par, inefficient trades.

you certainly grabbed the value entry on that one - push it till it doesn't want to go any further.
when it's done, it'll let us know.

She did indeed. Hopping onto trades like the one she just triggered, right at the bottom end of the pullback fade, allows a risk stop underneath the hourly higher low.
And that is a very smart regimen to follow when tracking momentum. When it eventually gives way, which of course it will at some point (even if to take a breather in order to check out future demand), the cost of doing business is minimal compared to the upside potential.

The more I read this stuff, the more I like.
It's easily one of the more intelligent threads across the entire trade forum network & should be a must read for all traders, new & old.

[Se7en]

It's easily one of the more intelligent threads across the entire trade forum network

You're not wrong there visualxray. And it is so because it's based on pure common sense, a trait totally lacking from 99% of the junk doing the rounds out there.

Same entry level & tactic as Sarah, different trigger set up.
Sprinkled with a little bullish divergence for good measure (hopefully).
It's definitely retaining a bid early this morning. Whether it's sufficient to overcome the offers tiered into yesterday's highs is to be seen, but for the moment I'd rather continue to bid it up.

[shona123]

Well played guys.
I don't need to tell y'all but it's a similar deal on aud/usd this morning @ 1.0360 & cable @ 1.6115.
No real follow through at current levels, which has prompted me to cash out my eur/usd long.

I'll hold onto aud for the time being as 1.04 is the 50sma on the daily & I'd like to see if it can hurdle that up to the 1.0450-70 area.
Good luck into the week's end.

[jack mason]

It was worth a shot guys, but the mornings highs just couldn't muster any follow through.
All lower highs & lows after the initial thrust, so the risk simply scratched itself out.

Powder dry, back for the next one!
A good example of picking up the bias & triggers into early european momentum though!

Risk off Friday anyone?

[jjay]

It was worth a shot guys, but the mornings highs just couldn't muster any follow through.
All lower highs & lows after the initial thrust, so the risk simply scratched itself out.

one of my old bosses used to say;
"never give up the ghost till the London fix (16.00hrs uk) is toast"

it's all been about the yen today folks.
they're like kids with toys

[kipper]

Powder dry, back for the next one!
Risk off Friday anyone?

It might well turn into a 'thin' friday Jack after yesterday's to-ing & fro-ing & release of pressure. There isn't much on the docket this morning apart from German consumer inflationary numbers to spur it on in either direction.
Obviously, the EU summit continues into the close the only other fly in the ointment are the US home sales numbers out later, but unless they're vastly under/over consensus that shouldn't upset the apple cart too much.
By then, I'd imagine if price is intent on travelling either side of this ledge it will have shaken out by the time that data hits the market.

For the more aggressive among us, a breakout (either side) of this tight consolidation will offer a clue via the 5 minute cycles, but if it plays out anything like it usually does after a busy middle of week, it will result in thin, erratic price action.

Like a good boy scout - "be prepared" & trade the cycles!!

[strobe]

It might well turn into a 'thin' friday Jack after yesterday's to-ing & fro-ing & release of pressure.
........but if it plays out anything like it usually does after a busy middle of week, it will result in thin, erratic price action.

You could be right.
This is a potentially whippy range as price didn't really follow through on the drop away from that lower high yesterday.

The cycle has already saved me from a false breakout this morning & it looks like a thin start to the day, with not much in the way of sell stops underneath the range low for now.

I set a sell stop at 1.3059 earlier as price moved down through the sequence, looking to slip into a possible 1-2-3 (lower low/lower high) through the range bottom, but as you can see from the 2nd chart, it never triggered & instead popped right back towards the top of the channel.

It would have caught (& stopped out) quite a few blind breakout players though & is a typical trap when attempting to trade out of a small, tight range.

[speedbump]

Once it's broken or compromised & the momentum doesn't push back out the other side, the cycle gets recalibrated.
So another high/low, lower high (1-2-3) sequence can be plotted once price moves back through this lower support level, & the entry/stop-loss/next forward target area can still be traded if the set up rolls back into line.

As was mentioned by Joe in his recent post, the same principles apply as effectively whatever chart timeframe you prefer to work from.
Providing the risk (or business cost) justifies the odds (initial target zone) of checking out forward momentum, & you're not negatively skewing that ratio, then it's a goer.

[strobe]

As was mentioned by Joe in his recent post, the same principles apply as effectively whatever chart timeframe you prefer to work from.
Providing the risk (or business cost) justifies the odds (initial target zone) of checking out forward momentum, & you're not negatively skewing that ratio, then it's a goer.

That's very true & good luck with it speedbump!
I've left it alone after the first attempt & am taking an early bow ahead of the w/end.
The last day & a half have been a bit too choppy & indecisive for my taste buds. We'll see how the wind blows it into early next week.

I hope it runs on for you man, good w/end all.