Exercise No.3
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Now I’ve posted a b and c here. Major Trends in RED and the counter trends in Lime GREEN.
In the GBPUSD pic I cannot see a counter trend. I do see a control change (I think) in this case with where I am in the course I would have run with a number of sells until about 22nd Jan to see where market went and then changed to BUYs with the new MOR in Feb.
On EURUSD the uptrend meant buy, however, a big turnaround on the 11th where the counter trend would have indicated to sell with the trend moving 3 times before month end. It looks like it could have been a very profitable month using the trend and countertrend markers – is that right?
On EURGBP it was more consistent to the Major trends with potential profits towards both end of months with the move towards countertrend – how we trade that I really don’t know yet……
On
Hi Allan, I just dropped a few notes and lines onto your charts. Remember to join up the highs when you’re marking a downtrend and join up the lows when it’s an uptrend.
You did well to spot that change in control on GBPUSD. I’ve put a box around the bar that for me showed the bulls stepping in with intent. Have a look and let me know if it makes sense. All the best, Rich.
Hi Rich
I would like a bit of advice on the attached EURUSD chart.
It has been in an uptrend since December 2015 and the major trend line has currently been drawn between this date and 10th March 2016 however, a recent high was made on 3rd May 2016 and the recent low just prior to that was on 25th April. If the major trend line is connected to this point it will cut through a lot of the previous price action. Would it be valid to connect the start point with 25th April point, or leave the line until it can be drawn so that it does not cut previous price action?
The control is currently with the buyers but has recently retraced to the MOR. The market is unsure which way it wants to go at the moment. Understandable with Brexit a few days away. I have added what I consider would be appropriate counter trend lines and some do indicate support and resistance but I would not be confident trading off any just yet.
Tony
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