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Thread: Too Gungho !

  1. #1
    Senior Member Mike M's Avatar

    Too Gungho ! !!!

    I tried to follow the " simple balanced system" strategy. After looking at this again I drew a trend line from the 12th till now. It dropped from 1.139 to its current spot so I thought it was in a downtrend and might be safe. Bit embarrassed because I think I jumped in too early and didnt wait for a bounce off the resistance line of 1.1311. Not sure how to name this one.

  2. #2
    Legendry Member Michael Hodges's Avatar
    Here's a tip, and some questions, for educational purposes....

    1) redraw your trend line from the peak 12th to the first peak on the 15th. Now what does your chart look like?
    2) notice how resistance forms in relation to the trend line now.
    3) what can you say about the 1st peak formed on the 15th and the first peak formed on the 17th?
    4) what does it look like the pair is doing over the past half day? It's up against resistance, forming a small consolidation... what would be the next thing to look for now?

    Nice try drawing trend lines, keep on practicing, but work on where you draw your lines. You should connect 2 highest highs or lowest lows to make a trend line, and then anything that happens after that is a signal or not. The way you drew yours there are only two anchor points so it isn't a strong enough trend to make a good signal yet.

    the resistance line is good, drawn across the series of peaks on the rt hand side of the chart.

    here are some links to follow to learn more, if you want. They'll help you make the Simple Balanced System work.

  3. #3
    Senior Member Mike M's Avatar
    Thank You Sir.
    To be honest, I was extremely nervous because was my first trade and having to explain my decision really held me accountable.
    Knowing that others in the community are possibly viewing this adds a little edge also, however I'm Glad I jumped in and had
    a go and I appreciate your guidance.
    I shall go back to my mt4 chart and analyse it so that I can find some answers to your questions.

    Kind regards

  4. #4
    Legendry Member Michael Hodges's Avatar
    you hit the nail on the head! using communitraders to learn is awesome because it holds you accountable for your decisions, and led you to learn a little about trading. don't be shy, we are here to help. Trendlines are discussed a lot in the strategy and tools forums, or we can start one if you want.

  5. #5
    Senior Member Mike M's Avatar
    It's after midnight here in Australia and I hope I don't sound like I'm rambling on, but here goes.

    I redrew my trend line from the 12th to the 15th. The trend line looked like a resistance line
    until it reached 1.125 where that became a support line.

    It looked like price broke through the trend line and formed some consolidation at the 1.125 area until
    the price hit the second peak on the 17th. Would it be safe to say this higher high on the 17th well and truly broke the downtrend ?
    This peak looked like it became the new resistance. Price seems to be consolidating around this area.
    I'm feeling like this may break that resistance and move to the upside.

    I'm trying to save my chart images from mt4 to upload and show you but I'm not having much luck. I'll work it out though.

    Thank You for your time

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