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When executing trades based on a trendline, it is important that the trendline is a valid one. This validation would occur when price has touched and respected the trendline a minimum of three times. Take a look at the current 4 hour chart of the AUDCAD below for an example…
The first point on any chart is simply a random point on that chart. When a second point appears, no matter where it appears on the chart, it can be connected to the first by a straight line but that really tells us nothing. When the third point occurs and it can be connected by the same straight line that connects points 1 and 2, now we have something from which we can trade. Once the third touch occurs, provided that the candle does not close above the trendline in a downtrend or below the trendline in an uptrend (in other words price respects the trendline), we would take a position at the open of the next candle. Our stop would go below the trendline in an uptrend or above the trendline in a downtrend. Looking at the above chart, a trader could take a buy (long) position at the open of Entry Candle A with a stop (red line) just below the trendline. A trader could also take a buy position at the open of Entry Candle B with a stop just below the trendline. Going forward, if the current open candle, the last one on the right of the chart, closes above the trendline, a trader could take a long position at the open of the next candle (not yet on the chart) with a stop just below the trendline. Richard KrivoTrading Instructor DailyFX, The Research Arm of FXCM Inc.2701 Dallas Parkway, Suite 600Plano, TX 75093Tel (972) 535 9000Fax (212) 897-7669E-mail: rkrivo@fxcm.comTwitter: @RKrivoFX
Prezzo prendendo in a un grafico a 4 ore possiamo vedere chiaramente resistenza in formazione sul nostro canale di prezzo. Resistenza attualmente risiedono presso 1,3525. Si trova a questo punto di connessione alla linea di tendenza da settembre 25 alte (1.3824) per il 29 settembre alta (1.3678). Sapendo resistenza canale ci offre l'opportunità di utilizzare indicatori di entrare in con la nostra tendenza, pur mantenendo la gestione del rischio buona.
La mia preferenza è quello di vendere l'EUR/USD su un crossover di ITC da livelli di ipercomprato, conforme all'inizio del prezzo. Gli ordini devono essere collocati come vicino come possibile, di vendere a resistenza 1.3525 o meglio. Fermate devono essere posizionate sulla resistenza alla 1.3690. Limiti dovrebbero essere disposti a 1,3125 per un chiaro rischio ricompensa rapporto 1:2. Gli scenari alternativi comprendono sfondare resumes resistenza e prezzo, rendendo più elevati livelli di prezzo. Ulteriori risorse come al commercio ITC Trading settembre US Jobs Report impostazione Trading aspettative dal grafico giornaliero - scritto da Walker England, Trading istruttore a contatto Walker, emailwengland@fxcm.com. Seguimi su Twitter a @ WEnglandFX. Per essere aggiunto alla lista di distribuzione di posta elettronica di Walker, inviare un'e-mail con oggetto "Lista di distribuzione" a wengland@fxcm.com.
Taking Price in to an 8Hour chart we can see resistance above 80.16 on the AUD/JPY by utilizing a 200 MVA. Price has continued to trade under this line of resistance dating back to July of 2011. Moving into its fourth month of a downtrend, we will begin looking to trade the AUD/JPY short with the trend by utilizing the MACD indicator. Potential signals for entry will include the MACD and Signal line crossing above the zero line.
My preference is to sell the AUD/JPY on a crossover of the MACD & Signal line. Orders should be placed to sell the AUD/JPY as near resistance as possible at 80.00. Stops should be placed over resistance near 82.00. Limits should be placed at 76.00 for a clear 1:2 risk reward ratio. A second long term target may be placed at 70.175 on a breakout to new lows. Alternative scenarios include price breaking through resistance and price challenging Sept 2011 highs. Additional Resources Trading with MACD Identifying the Trend Money Management --- Written by Walker England , To contact Walker , please email http://Instructor@dailyfx.com/. You can follow on Walker onTwitter @WEnglandFX. To be added to Walkers’ distribution list, please send an email with the subject line “Notification,” to WEngland@fxcm.