Euro / U.S. DollarUpdated EURUSD - "Technical analysis" ?
The word technical analysis is thrown around all the time. Whether it be related to a chart with 5 indicators and an animal shaped pattern, a randomly drawn 'fib retrace', or when a new trader identifies his first semi-accurate trend line...
Well here is an example that I think may be more useful for some members here who look at charts to learn and get ideas rather than only to copy other peoples TP and SL levels in the hopes that they're copying from someone clever.
I won't go into detail to explain because Id rather spend the time doing paid teaching rather than free. Instead I'l leave you to figure out what "technical analysis" has been added to the chart and more importantly why. The next step is figuring out where these methods can be implemented in other charts to see if you can replicate.
Observe, understand, replicate. Those are the magic three steps you need to take at every opportunity if you want to continually improve your returns each year.
As for the chart itself, I'm sure the significance of the price resting at the red resistance line is pretty obvious :)
Enjoy.
EDIT: Unfortunately the 'trend angle' tool (showing 9 degrees) is not consistent screen to screen. So it will be at the incorrect angle for some people depending on screen size/zoomed-ness. But the idea and functionality remain.
Well here is an example that I think may be more useful for some members here who look at charts to learn and get ideas rather than only to copy other peoples TP and SL levels in the hopes that they're copying from someone clever.
I won't go into detail to explain because Id rather spend the time doing paid teaching rather than free. Instead I'l leave you to figure out what "technical analysis" has been added to the chart and more importantly why. The next step is figuring out where these methods can be implemented in other charts to see if you can replicate.
Observe, understand, replicate. Those are the magic three steps you need to take at every opportunity if you want to continually improve your returns each year.
As for the chart itself, I'm sure the significance of the price resting at the red resistance line is pretty obvious :)
Enjoy.
EDIT: Unfortunately the 'trend angle' tool (showing 9 degrees) is not consistent screen to screen. So it will be at the incorrect angle for some people depending on screen size/zoomed-ness. But the idea and functionality remain.
Note
Now if you look at the updated chart above, you will see the descending channel in red marked. We used the first analysis to determine this possibility before putting it in the chart.
The two blue dotted descending parallel lines are used for for distance calculation, not trend.
The lower line is now the lower level of the channel marked in red.
The parallel line above that is now the 50% point in the channel marked in thin dotted black.
And we added another parallel line of the same distance apart above that, to mark the upper level of the channel, also marked in red.
A break above this channel gives us a great buy signal.
Otherwise, selling is the best option while price is below resistance points (E.G the red horizontal line in the original chart).
Does anyone find these posts helpful? :) Apologies if it comes across the wrong way. I am merely trying to help people by sharing examples of working methods that I don't see people use very often. Or not properly anyway.
Note
Above you can see the final update of this trade.
First we did the laid out the technical analysis. Then we waited for a confirmation and sign of direction. And finally we see price hit our target and the trade is closed.
Apply these methods to multiple timeframes and multiple pairs and you'll begin to see consistent, profitable, LOW RISK opportunities every day.
To me, that beats searching for the 'huge reversal' or 'big breakout' every day and only sometimes catching it.. :)
Happy trading everyone.
Note
(Edit) Apologies for the screenshots having slight variations each time. I delete some lines for simplicity's sake while I trade and then forget to put them back for these update screenshots.
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