Practical Exercise 3
June 25, 2015 at 8:34 pm #1327Ronald WilliamsParticipant
Practical Exercise 3
I have found it quite difficult to find suitable examples for this exercise but attach my best effort. I welcome any comments.
RonJune 25, 2015 at 8:36 pm #1328Ronald WilliamsParticipant
Sorry! Here is attachment.June 26, 2015 at 9:15 am #1330
Your trendlines are perfect 🙂 In real-time all you really need to do is make a start from the recent high or low point and start connecting together the subsequent high/low swings. You’ll find the lines look after themselves… what starts out as a countertrend line can become the major trend, the major trend might accelerate steeper, or it might turn into a real long-term epic with adjustments made to accomodate the new breakouts in price along the way.June 27, 2015 at 6:38 am #1335Andy SmallParticipant
Hi, I’ve been away for a while – disasters involving water leaks and tiled floors being dug up!
I’ve had to re-watch the lessons on this a couple of times, hopefully I’ve got the right idea.
I’ve placed a counter trend line which had me looking for an opportunity to trade against the major trend, but this did not happen as the price failed to break through support.June 27, 2015 at 9:10 am #1337
Hi Andy, sorry to hear about your leak 🙁 I had friends who had a pipe burst in the loft while they were away on holiday and the water was flowing for 5 days. It literally trashed their house from top to bottom, ceilings down and everything (and it washed away part of their garden too!)
On a positive note… your trendlines are looking good 🙂July 8, 2015 at 4:26 pm #1399
Here is an attempt at Trendlines #3. I have watched your videos several times but still not sure if I’ve got the hang of it. Not sure what I’m skimming with my counter-trend lines – the bottoms of the solid part of candles or wicks? Not very confident at all here…oh dear, don’t know why I’m bogged down with this module, think I should maybe push on with further videos so I don’t get fixated on this and maybe it will become more apparent in time. Even so, I will still post up another couple of attempts once I find them. Thanks for comments.July 8, 2015 at 8:44 pm #1401Nigel SouthonParticipant
Good attempt Gillan, And thanks for sharing this.
I maybe wrong, but it appears that the main trend line has been moved too early for the EURUSD hourly, it should be touching 1.1480 (as per your start of Trend line) to the candle 1.13435 instead of your 1.1220 candle.
All other charts look good, and well done with the counter trend lines.
It will be interesting to see Rich’s feedback, as I maybe completely wrong.July 9, 2015 at 9:00 am #1403
Thanks for posting your trendlines. Don’t worry, it’ll all click into place with a bit of practice, I promise 🙂
Did you watch the webinar on Tuesday? We did a bit more work on trendlines that you might find useful. You’ll find the recording on the ‘webinars’ tab of the homepage if you didn’t catch it live.
With your countertrend lines you’re just looking to join together prominent highs and lows to make a line that the wider market will have noticed too. The key with countertrend lines is only to focus on obvious ones. You don’t need to force them onto the chart and sometimes there won’t be any good countertrend lines available to use at all.
With your major trendline I’ve adjusted it slightly on the attached screenshot. If you look for the current high point on the chart and then the current low point you can then draw a line as tight to the price action as possible, but it can’t actually go through any of the candlesticks. That should help you find the recent swing high/low to use as a connecting point for your line.
I’ve also added a couple of other countertrend lines you might have picked up while this market made progress across the chart.July 9, 2015 at 9:34 am #1405
Hello Rich – thanks for over-marking my chart. I can see exactly that I should have put the line where you put it now, although at least I remember being aware not to cross into any candlesticks on the way. Haven’t watched webinar just yet but will do certainly. A good exercise in positive thinking to be subliminally concentrating on looking for and connecting your ‘highest highs’ and ‘lowest highs’ as it is in life! Thanks for your encouragement, just felt a bit dim and slow but determined to get the hang of it and I will try another couple charts for posting. Hello Nigel – I didn’t think for a minute anyone would actually be looking at what I was doing! I feel so far behind. Thanks indeed for commenting – I’m going to write these level figures down and go and see what you mean, I hope your guesswork was right though. Thanks to you both for now.July 9, 2015 at 12:32 pm #1410John MurphyParticipant
You seem to have used the hourly chart for your example. The recommendation is to use the daily one as part of the core strategy (appreciate that you may not have got that far as yet). What you do see in the video’s is that Rich compresses the timescale quite a bit so the major trendlines he draws have a lot of ‘history’ behind them and they will help us to see where the overall market for the pair in question is going.
Also, using the daily chart makes it easy to update as you can just check once a day to see if any of your lines need adjusting.
JohnJuly 9, 2015 at 2:57 pm #1415
Thanks for comments John particularly for reinforcing that it is the daily chart I should be working on. I’ll go away and work at another couple of charts for posting up and get some more practice.July 9, 2015 at 5:24 pm #1416Nigel SouthonParticipant
Hi Gillian, Well done for posting your work. I hope that this has helped you. I have also learnt something from Rich’s reply.
NigelJuly 10, 2015 at 10:21 am #1422
Hello Rich – I have done another two charts ‘simply’ – the AUDUSD, I thought I only saw one counter-trendline and would be interested to know if, like me, you thought that there weren’t really any others of note as, in a way, it would help me to learn what’s ‘not there’ as well. The NZDUSD, I didn’t really know if I started the main trendline in the right place but hopefully counter-trendlines may be fine. Two questions: at what point does a main trendline start off, is it at the beginning of the month? because really my charts here are based on patterns that have already happened. Also, should counter-trendlines cross through any candlesticks at all (I know the mains don’t)? Thanks for your help – I’m away a walk now to get away from the screen so I’ll see what you think when I come back!July 10, 2015 at 12:45 pm #1425John MurphyParticipant
From what I can see your AUDUSD main trendline looks fine, the countertrend seems okay although perhaps it needs to connect with the latest low.
Your NZDUSD main trendline should really be connecting highs rather than lows as the sellers are in control and you can use the line to help identify where a break to the upside might occur.
JohnJuly 10, 2015 at 12:55 pm #1426
Thanks John – you know I had a feeling there was something not quite right about the NZD – indeed, get that in my head – when sellers are in control, connect the highs and when buyers are in control, connect the lows ie do the opposite (I know what I mean). Yes, counter-trend lines – I take it they connect to the main trendline and querying the now as to whether they just skim the seat of the candlestick tails when drawn. Hope I look back on all this and laugh.
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