Technical analysis works best in forex because it is the only market with a common price feed so everyoine has the same set of prices on their charts.
So, there is a greater chance of a reaction if a level is violated, to a moving average or some indicator due to the common price feed.
This is certainly not true for CFDs.
There is a full update on this in Common Sense Trading.
Robinson, and everyone else – Technical analysis work on any instrument.
But the best results are in Forex – because of liquidity and volume.
Rules that we find in charts, instruments behaviour and patterns that we follow are better suited for currencies ( Majors the most) , than any other market.
So I might be totally wrong when it comes to your chart, but in short words : this cannot be Bullish.
Another leg down is in order .
Also, use that support line just below current rate , make a parallel one to it and place it down there on that low .
Hi David – let’s take this one step at the time.
Look at my EURUSD 4h chart and compare it to yours – I am not sure as I can’t see exact rate , but we might have a little problem here:
– Different rate feed ( believe me when I say that my rate is 100% correct )
– Different charting systems ( some are better than others )
– And maybe you have drawn this chart free hand…
Now, you got the Upper line right , but lower one seems to me is not exactly parallel to it.
You should use “parallel” or “duplicate” in your charting system.
And then there is a problem that was my mistake – I have never mentioned what type of chart you should be using – Bar chart is what we gonna use from now on – all of us.
As you can see on my chart, there was a clean break of Support line and perfect entry in next bar .
MA’s crossed in a Sell as well , so an easy one – but when looking at your chart with Candlesticks on it, obviously it is not clear – so I understand where the problem is.
Charlotte , do me a favour :
– Raise that Upper blue trendline just a bit – exactly on the top
– Make a parallel trendline based on that Upper one
– Place the parallel line on that previous Low – Remove existing Blue support line
That would be the perfect channel.
As I can see, you are trying to find horizontal Supp/Res zones – check out Jay’s charts in Common Sense Trading – you just made manually a very good combination between Jay’s and mine approach 😀
Robinson….I’ll think what am I going to do with you for being late to submit your homework…. 😀
© 2024 Global View