Friday, July 20, 2012

6E - Trade the conclusion on 1 hour chart

What can I say? I have already said it on the chart. Well, then there are the other timeframes and other indicators that also support this trade, but keeping it simple is the way to go. It's a matter of can you trust the setup and take the move by taking the trade and holding. Yeah, that is definitely the challenge. One thing is true, the technical setup doesn't fail. It is what it is.

The bearish divergence took 3 days to build, and gave accurate clue as to which way it will move before the move actually happened. Check the 4 hour chart and see how it confirms this setup.

Tuesday, July 10, 2012

6E - 1 hour and 5 min chart together

For this trade, you would have to spot the divergence being setup on 1 hour, and at the same time recognize head and shoulders pattern on 5 min chart, to take the trade at close to the high, and hold it for 5 hours to get the full move being made on this setup, as the price goes up and down making lower high and lower lows. 1.2246 that it hit is -50% fibonacci extension from 1.2759 - 1.2417, which was the initial down move from the previous high.