Obviously my short-term trade set up is a thing of beauty, and relatively soon – will be made available to the rest of you. But aside from that, I want to pass along a simple little tip – that could provide you an “edge” here in the meantime.
When you drill down to smaller time frames such as a 1H chart (1 hour candle formations) or even a 15 minute, or 5 minute – take out your crayola crayon (and not your laser pointer) and draw a line THROUGH THE MIDDLE OF THE CONGESTION/SQUIGGLES. It will be this “price level” that is currently at play – and not the “highs and lows” of the given time frame.
For the most part anything smaller than a 1 Hour chart is frankly just “noise” so the highs n lows are really not as significant as the middle ground where price is centered. Once these lines have been drawn – a trader can then focus on a “realistic price” to consider for entry or even stops etc, as the volatility short-term will spike/fall and give you all kinds of levels – not exactly relevant to your trading. On a 1 hour Chart 30 – 50 pips on either side of this “central price” is completely normal, and isn’t enough to even get my heart beating – in consideration of dumping a trade.
If you don’t understand the given volatility on the time frame you are viewing – you will get killed.
Take out a crayon and not a laser pointer – and plot the “middle of the squiggle “.
As simple as it seems – this can easily be the difference in catching many, many more pips in any given trade, based on the fact that you have not skewed your lines of S/R to reflect the highs and lows of smaller time frames….but the center – where price is currently fluctuating.
Pot Stock Watch,
Thanks and will look at the FXA chart…Take care.
A nice move in Aussie today as suggested – with significant upside potencial.
It’s too bad there arent better alternatives in the stock markets – for those not trading in a forex account. You’d think there would be a relatively easy way to play it – and not at 104 buks.
Risk on trades moving nicely today Kong – thanks for the entry calls – looks like the SPY is reaching O/B and will be ‘running on fumes’ soon but pretty much everyone is calling a (short term) top just about here so to confound everyone I guess it could just keep going for a while longer.Great work Kong and looking out for ongoing developments etc
Again thank you so much Rolo for the positivity!
I agree with you 100% as per a post or two ago “blow off top”. This thing is surely on fumes for several reasons – and one really needs to stay nimble here near the highs.
I for one will push a “touch” further – but for the most part – will be looking to “cash is king” coming soon – to a theatre near you!
There’s always the Aussie futures — /6A
Love this blog and your comments at the rock climbers. You are a voice of sanity in the wilderness 🙂
Yes! – great point!
I rarely here that my voice is one of “sanity” so please – keep the comments coming.
Thanks for the positive words here…I really appreciate it.
Perhaps this blow-off top can begin tomorrow with the US ADP, GDP and the FOMC statement.
All seems to be well…. 🙂 I have been dipping into short usdjpy today just a little here & there, looks like we hit a little wall in the upper 91s…. is it THE WALL…. still remains to be seen but I am testing with caution for sure.
With the DXY rolling over I think for now its a go…. go … go…. 🙂
Also gold priced in Yen has peaked…. another area I have been looking at for a while….. just a thought of mine…