Below is an email exchange that I had with a member where we were having trouble getting the power point to attach to the forum. Now that we have it fixed he was kind enough to allow me to share his analysis with the community with our conversation. Have a look at the below conversation and the attached power point and let us know what you think.
Best Regards,
Dave
Quote:
> Hi David,
>
> Thanks for taking the time to record all those simple but exceptional
> videos
> on trading.
>
> Except for the MACD I do not use other indicators; I only use the MACD to
> look for divergence.
>
> Volume: where can I get a reasonably accurate indication of volume?
> Correct
> me if I am wrong, the volume displayed will be limited to the brokerage.
>
> I have attached a power point on a possible trade setup on the daily
> chart.
> When do I get into the trade, on the first break of resistance or wait for
> a
> retest of the resistance and the price not able to penetrate the
> resistance?
>
> Thanks & regards
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My apologies for the delay in reply here I was hoping to get this posted
on the forum today but am having some difficulties with getting the power
point uploaded so I will go ahead and answer you here.
Firstly I would like to commend you on your thorough analysis very few
people who contact me seem to have the discipline to put in the effort it
takes to really look at a trade from all angles as you are doing here.
As to your question about volume, unfortunately there is no where you can
get good forex volume since it is an over the counter market unless you
are trading with one of the larger banks who will give this data to you.
Some people will use currency futures volume but in my opinion this is not
a large enough sample to be significant.
As to your question on the triangle this is really a matter of taste as
some will enter on the break and some will wait for the retest and then
enter there. What I can tell you is that many times the market will have
false breaks of any support resistance levels including triangles so if
you do not wait for the retest then you risk getting taken in on a lot
more false moves than if you do. The flip side of that is that if you
wait for the retest often times as it looks like may happen this time the
market trades straight through the level and does not retest so you miss
more trades.
For me personally the patterns I am more confident in I wait until the
market has traded below my level for 1 hour and then enter and the ones I
am less confident in I wait for the pullback.
Hope that helps.
Best Regards,
Dave
Quote:
David,
Thanks for the response.
The trade has progressed pretty well so far. I am waiting to enter again on
a retest or a break. I have added the charts to the power point.
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Nice GBP/USD Trade with Analysis Attached
Linear Mode
