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  1. #11
    Senior Member Annovdbos's Avatar
    Quote Originally Posted by SheeNigami View Post
    Hey man thanks for the advice u actually helped me a lot for today's trade, reminding myself that trading with the trend is important and a lot easier. Your charts are very nice but the trend lines are a bit hard to draw live since they hardly touch. For example the first trade u highlighted it would have been hard to figure out how to draw that trend line without seeing the rest of the chart and pulling of the trade. However the other trend lines and chart was very well drawn! Thanks for the sample, about the stochastic mine is 5,3,3. I havent ahd the chance to read more about stochastic so it would be nice if u could recommend me a few articles to read. Thanks for the reply!
    Yep you are absolutely right, that first one is quite impossible to see when live. But that's not really my point. My point is that you should see the bigger picture and draw your lines in that bigger picture, then zoom in and analyse further. I used a different example now, because the channel we drew on the EURUSD broke.. So, I used a channel currently on the USDCHF. This is the Hourly chart, that's where I drew these first two lines:

    Attachment 6643

    You see how easy it is to spot a channel then? You see a nice downgoing trend.

    Then when we zoom in to for example the M5 timeframe we get this picture:

    Attachment 6644

    I added a line in the middle now. It's not necessary, but sometimes it will give you more opportunities to enter. So, at all the yellow arrow there were possible entry points. Note: I placed the arrows and looked where price touched the trendline and stochastic was overbought. So, that's only two signals, you always need three or more signals to make a trade. So if the candlesticks would be giving a signal too (doji candle, shooting star, engulfing etc.) than you have three signals.

    But to my point: you can use these patterns where already have been a lot of opportunities to look for new opportunities. So forget the previous opportunities and focus on what's coming. You know price is in downtrend, so focus on a possible put entry. You can see price is making it's way to the middle trendline at the moment (the orange circle). If it reached the orange circle there are two possibilites: 1) Price will break the middle trendline and head for the red circle, but I wouldn't trade that because stochastic is nowhere near overbought and you can see on the previous history that price broke the middle line a few times earlier and it's unclear how long the break will be. Sometimes it reaches the lowest trendline and sometimes it just lasts for a couple candles, so it's not safe to trade there. Possibility 2 is: Price finds support on the trendline and maybe it will reach for the green circle. But to take a call at the orange circle is very risky, because were in a downtrend. So, if it finds support on the orange circle wait until price reaches the green circle and take a put if the candlesticks are in your favour, if the stochastic is overbought and if the trendline holds.. It also might break there and make a new uptrend or go in range. You obviously don't know, that's why we need multiple signals to confirm a down or up movement..

    I personally find this way of drawing better, because a long term trend is stronger than a small trend on the M5 which reverses a lot.

    About the stochastic: I really liked this explanation of the stochastic: http://stockcharts.com/school/doku.p..._slow_and_full

    Hope this helps you. If you have any questions feel free to ask
    "You think I ain't worth a dollar, but I feel like a millionaire!" - Queens of the stone Age

  2. #12
    Legendry Member milos's Avatar
    Hey Sheen!

    I saw your trading potential!

    I voted for you to be trader of the month!

  3. #13
    Junior Member
    Hey thanks Anno i got your point and will definitely start looking at longer timeframes, also enjoyed the article on stochastic. That is a really nice chart analysis, almost as if it was dont by a pro!

    As for milos I thank you a lot!! Even though it is just a nomination i appreciate it very much, and i am now motivated to go for the win in a few more months, i believe I can definitely do it!! This means a lot for me as i can show it to my mother so that she will stop saying I am lazing around on the computer too much (I am a high school student) hahahaha.

  4. #14
    Solid Member
    As long as you keep your room tidy she'll be cool

    Keep working hard and learning, it'll take a while because there is no fast or quick route, but as long as you put the effort in, help will be given. Some nice work there Anno, i agree it looks very professional

  5. Thanks SheeNigami thanked this post
  6. #15
    Legendry Member willyw's Avatar
    Sheen, channel lines is a good tool for spotting entries and exits. Keep it up.
    Channel lines can also used for fprice prediction, too

  7. #16
    Senior Member Annovdbos's Avatar
    Quote Originally Posted by SheeNigami View Post
    Hey thanks Anno i got your point and will definitely start looking at longer timeframes, also enjoyed the article on stochastic. That is a really nice chart analysis, almost as if it was dont by a pro!
    Yeah, no problem! Looking forward to your next trades.

    Quote Originally Posted by macg2311 View Post
    Some nice work there Anno, i agree it looks very professional
    Thanks Gary!
    "You think I ain't worth a dollar, but I feel like a millionaire!" - Queens of the stone Age

  8. #17
    Junior Member

    Usdchf !!!

    Today I tried to trade USDCHF after drawing my trend line and S/R lines. I did 2 trades today. One was pretty bad and the other could be better, although i did learn something today.

    Click image for larger version.

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    The white line is a trend line i drew when i was doing the first trade. The white trendline was a londer trend line than the upper one so i thought price would hold above that trend line and previous support instead of the short term down trend continuing. This was a bad trade since i was impatient and did not wait for any confirmation, only the M5 stochastic was oversold and i did not wait for any confirmation candles to close before entering. I chose a 30 min expiry since i thought 10 mins was a bit too short (IQ Options timing..)

    I realised this after the 2nd trade i did, when the bullish hammer popped up. I actually entered the 2nd trade before the bullish hammer because i still did not think of my mistake , I just simply took the opportunity since this time, the stochastic from M5 to H1 were all oversold. It was only after i entered that i realised my mistake of not waiting for confirmations on both trades (when the hammer popped up, i realised). For this trade, I updated my trend line after the next few candles popped up and when the price reached the next support line, touching my trend line i took a call which did work out.
    These were my 2 trades:

    Click image for larger version.

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    Today, I learnt that i should always wait for confirmation and NEVER be impatient as it may very well turn out badly.

  9. #18
    Junior Member
    I also have a few questions. For drawing longer trend lines, connecting them to the wick and the ope/close may result in very different trend lines, so i was wondering how do i decide which is better for that particular trend. The first trade, the white line was connected to the open/close but the 2nd trade trend line (purple line on mt5) was connected to the wicks. The 2nd one worked but first one didnt... I also found that longer term trend lines are less accurate and i should not follow them to the pip (any advice on this? Like when to trust it)

    Next, i also found a channel on the EURUSD but didnt really find a good entry (the one i saw had oversold stochastic, so i didnt enter. Should I have, would you? It would have worked out..)

    Click image for larger version.

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    Some advice on the channel which i drew would be nice as well, Thanks!

  10. #19
    Senior Member Mike M's Avatar
    Hi SheeNigami.

    Glad to see a another fellow newbie who has kicked off their diary in great fashion.
    Listen, I'm not the expert on trend lines by any stretch of the imagination, but I do
    recall many experienced traders commenting on how S&R lines are so subjective and different
    people see what THEY see. I'm not totally convinced I haven't yet got this right but lately
    I've been drawing mine on the Day or Hour chart, and then when I drop back to the M5, I adjust
    my lines if I have to.

    Your channel looks great. I drew very similar lines as well. I got home from work late tonight
    and when I checked in on the charts I found a few opportunities in that channel I would have seriously considered
    taking.

    I often put a middle line in my channels like you did as a reminder of the zone not to play around in.
    I've been burnt before playing around in the middle area and so know I only wait for touches off the top/bottom
    S&R lines.

    I hope this helps someway my friend. I'm still very early on in this journey as well.

    Happy trading mate.

  11. #20
    Junior Member
    Super busy with school exams lately so do not have time to trade.... they will end next Wednesday!

    Finally got some time to trade today but couldn't get my MT5 to work... it says "authorization error (service is unavailable)" and could not get it to work even after reinstalling it... It works on Web version of MT5 bur no matter what I do the charts won't start updating..

    If someone knows a solution please tell me! In the meantime I will probably stop trading till Wednesday. Hope to update this diary again soon

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