Major & Countertrend Trendlines
May 28, 2015 at 1:50 pm #852Sue SchlaifferParticipant
Another challenging exercise for me, but I managed in the end to draw some trendlines on three different charts.
After this was initially a buyers market on May 11th, it rapidly changed to a sellers market on 12th May at 23:00 pm. I noted a slight support signal on 27th May when the market was at the same level as on the 19th. However, the market did not recover again and a downtrend began to spiral.
The 11th May saw the start of an uptrend in the markets, but this soon changed as a downtrend sellers market began the following day. Although there were a couple of weak levels of support the market continued on a downtrend which was great for sellers.
The 8th of May saw an all time high which was not set to last as the markets seemed to show small areas of support and resistance, but the overall picture was one of downtrend as the month drew to a close.May 28, 2015 at 6:56 pm #869
Good stuff, I can see you’re getting the principles in place here. Have you tried applying them to the daily chart? Remember that’s where you’ll pick up those more widely observed features to use as profit targets. You’ll often find the trendlines are easier to work with on the dailies – there’s less ‘choppy’ price action than on the 60min charts.May 28, 2015 at 7:45 pm #872John MurphyParticipant
I’ve taken a chart of GBPJPY and plotted two major trendlines and two counter trend although I’m not sure about the second one. It does help to reinforce the major trendline as it crosses and as the main trend is up it seems to be good point to trade from. I see that major lines should be okay, the counters are a bit more subjective so I’ll need spend some time looking more closely at that.May 29, 2015 at 9:21 am #877
Hi John, major trendline looks great, don’t worry about forcing the countertrend lines. The ones that will be most widely observed are ones with clear ‘connecting points’. If it’s a bit of a struggle to find a good place to draw one it probably wouldn’t be as effective anyway so don’t worry about that.May 31, 2015 at 6:13 pm #929Wayne JonesParticipant
I have attached two efforts. The first being on the AUDJPY. I could only find the trend line for this one. I have also entered the MOR. As you can see this was in an up trend, I could not really find two high points. In retrospect maybe the last high point and the next pull-back may have been a suitable place but maybe not as the pull-back isn’t really a high point at that stage.
The other chart is from the AUDNZD. I have taken two months worth of MOR as I think it’s good to start practicing that now. I have also found the trend line which was a big up move. I have also attempted to plot two counter trend lines. Any feedback from Rich or any of the new group would be much appreciated.
For counter trend lines am I right in thinking we have to wait days if not weeks before one may develop?
WayneJune 1, 2015 at 10:11 am #933
Perfect major trendline on AUDJPY. And you could slot in a provisional countertrend line as you suggest. Remember with those its a case of finding prominent points that the wider market is likely to be seeing too. If you’re struggling to find solid connecting points it means there probably isn’t a usable countertrend placement available (and that’s fine, you don’t always see clear countertrend lines like you have already noticed)
On AUDNZD I’ve relocated the major trendline and arrowed the second connecting point. You’d need to wait for a breakout to new highs before using the original connecting point you had if place – remember you want to look for the low points before the most recent high.
Good to see you starting to pull the pieces together by including the MORs too 🙂June 1, 2015 at 4:05 pm #936John ThurlbeckParticipant
Hi Rich and all,
Major and countertrend lines observed and marked up on GBPUSD daily chart.June 1, 2015 at 4:41 pm #939
Hi John, looking great 🙂June 2, 2015 at 4:04 pm #962Jonathan MarlandParticipant
Can you please look at the attached GBPUSD daily chart? it looks too simplistic….. !?
JonathanJune 2, 2015 at 7:40 pm #969
Hi Jonathan, simple is good 🙂
Looking great, one small thing – you could maybe move that latest downtrend line to begin on the high of the red candlestick so no price action is intersected.June 3, 2015 at 1:14 pm #985Jonathan MarlandParticipant
We have been using the daily chart to draw in the Trend lines, but when we get into the smaller timeframes the trend lines are not the same. Am I missing something here? If trading the 15 min chart the trend lines will not be in the right place. Do we have to redraw?
JonathanJune 3, 2015 at 2:35 pm #988
You’re better to plot your lines on the daily chart, make a note of the price where price action would intersect your line on the approaching trading day, and then represent that price on your 15min chart as a horizontal line (there’s a walkthrough of how to do it in the trendlines video). It avoids having MT4 re-paint the trendlines lines due to changes in scaling when changing from the daily to the 15min chart.June 20, 2015 at 5:51 pm #1282Dave GregsonParticipant
I have attached a chart of EURGBP with a major trend line and couple of counter trend line’s.
Please take a look I think it is correct.
apart from i have done it on the hourly instead of the daily.
have attached another chart for GBPUSD on the daily.
DaveJune 21, 2015 at 1:51 pm #1285John MurphyParticipant
I have a similar buy trendline on a chart of mine. If you compress the timeline you will also see a down trendline starting in July 2014. I noticed that Rich does go back a fair amount of time to see where major trendlines are developing so I’d recommend you have a look at that as wellJune 21, 2015 at 4:21 pm #1287Dave GregsonParticipant
Thanks john will do
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