Thread: Defensive Trading the Force Continued

Ref to chart above,

I have no place on this pair right now but when I had been long at this time because I exchanged the breakout I'd prob put my stop just beneath the blue line. If I'd have gone bearish on the breakout My stop will be only at the top the resistance trend line. However I would not have opened a short or long position according to my rules.

If the PA affirmed a continuation this near the resistance/support lines I would think about a minimal risk position (maybe .10%) that I would build on whether the price were to finish a successful breakout, retracement and shape a continuation.

Direction?,

Its still a little early to pick call a management on this . Bears got a resistance line backed by another resistance line only up and also the resistance trend line. Bulls have that momentum functioning in their favor assistance and backed by the service line.

If the bears dont pick up the pace this pair will likely get lost in a range until london open. Some possibilities are shown on the chart below.

Following with interest - but checking in daily for thread . .

As we can see in the PA that the pair has chosen option two and is now at a crucial point. If the price violate the term support trend would exchange the continuation of this bearish break. Fist order of business would be to wait for the break.

A break of the term support leaves plenty of range for RR that is great.

Hi Forexjedi, I am following with good interest. I've got one question. I notice some of your trend lines are drawn in the candle highs/lows and others are drawn in the candle close. Do you have a set rule for that?

Originally Posted by ;

Hello Forexjedi, I'm following with great interest. I have one question. I detect some of your fashion lines are drawn in the candle highs/lows and others are attracted in the candle near. Do you have a set rule for that?

FX,

Good question. I picked the path for the TL depending on the PA and the change at which ive made my point. That is what made the most sense at the moment to me. Although on a break of this short term support I shall take under consideration the versions of this short term support TL I was already accounting for several short term support lines where I anticipate retracements and support problems as the price would make its way into long term support. The support lines are likely where we would observe retracements and continuations. The rule is to have the best idea of where the price will find support or resistance.

As you can see in the chart under the price can be held up by service forming a retracement. If the price breaks encourage we'll have continuation and we'll exchange this pair to the service line after all.