Price Action--III
We have finally gotten to the meat and potatoes of this series, but one more thing. I got to get to the legend, or you won't know what the lines represent:
We know the black, blue, red, and maroon represent. They are the lines draw from the 4-hour, daily, weekly, and monthly.
Chartreuse: hourly.
Dotted lines: supports
Bold lines: Resistances.
This is going to take awhile to get to everything, yet, this is so simple, especially if you use it lieu of the rest of your methodology.
The object is to find the recent swing lows and highs on that TF.
After the peak was hit, then you look to the west to decide the recent swing low. This is the hourly, which is why the green dotted chartreuse line lines up so nicely with that point. Notice on the 1st trip down it almost hit the line. That does not become a new swing low because it has to be to the west of the peak. What could very well happen is that on the way back down that point could be broken, the actual swing low to the west not be, and then you end up with next to nothing, and possibly a losing trade. We are only interested in counting lots of pips.
If the swing low on the hourly is a few pips above the 4-hour, then it is okay for an entry at the hourly, and for that matter, you could have a double position, one at he hourly, and the other at the 4-hour.
The entries are very simple. If you were considering this pair, then you would set a buy stop at the solid black land chartreuse lines, and a sell stop at the black line and/or the chartreuse lines. Actually, 3-4 pips on the other side.
You are going to leave many initial pips on the table, but when your order kicks in, you see by the candle what happens.
I was not in this trade today, but I am in the AUD/USD and the NZD/USD. They are both not doing exceptionally, but I'm going to show you an advantage next.
BTW, if this sounds too simple, at this point it is suppose to. We'll get into where to take profit and set stops and some other things.
Next, we take a trip to the land of Aus(sie).
upload images
We have finally gotten to the meat and potatoes of this series, but one more thing. I got to get to the legend, or you won't know what the lines represent:
We know the black, blue, red, and maroon represent. They are the lines draw from the 4-hour, daily, weekly, and monthly.
Chartreuse: hourly.
Dotted lines: supports
Bold lines: Resistances.
This is going to take awhile to get to everything, yet, this is so simple, especially if you use it lieu of the rest of your methodology.
The object is to find the recent swing lows and highs on that TF.
After the peak was hit, then you look to the west to decide the recent swing low. This is the hourly, which is why the green dotted chartreuse line lines up so nicely with that point. Notice on the 1st trip down it almost hit the line. That does not become a new swing low because it has to be to the west of the peak. What could very well happen is that on the way back down that point could be broken, the actual swing low to the west not be, and then you end up with next to nothing, and possibly a losing trade. We are only interested in counting lots of pips.
If the swing low on the hourly is a few pips above the 4-hour, then it is okay for an entry at the hourly, and for that matter, you could have a double position, one at he hourly, and the other at the 4-hour.
The entries are very simple. If you were considering this pair, then you would set a buy stop at the solid black land chartreuse lines, and a sell stop at the black line and/or the chartreuse lines. Actually, 3-4 pips on the other side.
You are going to leave many initial pips on the table, but when your order kicks in, you see by the candle what happens.
I was not in this trade today, but I am in the AUD/USD and the NZD/USD. They are both not doing exceptionally, but I'm going to show you an advantage next.
BTW, if this sounds too simple, at this point it is suppose to. We'll get into where to take profit and set stops and some other things.
Next, we take a trip to the land of Aus(sie).
upload images
