Elliottwave Intraday analysis, trading plan and discussion for Aud.Usd, Aud.Jpy, Gbp.Usd, Usd.Cad,Eur.Usd

http://www.ablesys.com/fxcm

Attached Images

   

In this topic we'll discuss about trading using only two pivots. But first, let's define them.

As you already may know, the pivots are those support and resistance zones which, according with the variation of the price - they can pass from a category to another. (example: from support to resistance).

As an example we took randomly a real scenario on the AUD/CAD pair; we spotted a resistance on the 0.9833 level. Until the 1st October 2010, the price haven't pass through that level. On the closing of the bar formation, on the begining of October of that year that level was touched. Later on, we can observe that the price find support on that level for the future up movement - so the resistance has transformed in support now.



Conclusion: a support which is becomes resistance (or vice versa) is a pivot.

Always, there was a large investment problemm in this area of investment regarding the price trends in a given time. The big issue is if the price is in up trend, down trend or has a tendency to develop in both directions ( notions known as: sideways, range).

Always, there was a large investment problemm in this area of investment regarding the price trends in a given time. The big issue is if the price is in up trend, down trend or has a tendency to develop in both directions ( notions known as: sideways, range).

Trading using two pivots coming in solving this dilemma.

For starters, you need to determine (on any given chart) two most important levels of the price, where the price often reacted significantly or even more violently than the usual. We need to built only two horizontal lines. The ultimate goal of this is to have a system define for you in a very precise manner if there is trend or not or future warnings regarding the possible shifts in trend.

In the example below, on the AUD/CHF pair, we established two pivotal values ​​of 0.9850, 0.9473 respectively.



Usually, the bias it is established by looking not so much into the past (the chart has to remain on the original zoom as you find it default in the metatrader platform) or even zoom one notch if it truly necessary.





I did look in the past much longer only to highlight and make you better understand these areas and I urge you to do the same when you analyze these areas of price where you struggle to attach two pivot lines because of the chaotic price action or lack of significant areas of support or resistance to draw the pivots. But these situations are rarely seen.

Now, depending on where they are placed in relation to the price of these two pivots, we have three areas of bias, as follows:

1. If the price is above the pivot with the higher value - the bias is up.

Attached Images

         

http://www.ablesys.com/fxcm

Attached Images

 

Well, sometimes its worth waiting for the right trades. If only it was not a Friday, I could probably let the trades run.

Attached Images

 

Alan Rich's trading journal

small blue dots are support. small red dots are resistance




[URL="http://www.ablesys.com/fxcm"]

Attached Images

 

A history of all my Daily analysis.

Have shorts riding this down move here. Not a bad week but interesting what we get next week. Uploaded a quick video to show what i am seeing on the charts for next week. GL everyone, have a great weekend.

http://www.ablesys.com/fxcm

Attached Images

 

small blue dots are support. small red dots are resistance

http://www.ablesys.com/fxcm

Attached Images

 

Ive been actually approached by several people to document my trades and i thought this would be a good idea myself since its a good education practice.

Just started getting back in the trading game and as of now i am trading one pair and thats eur/jpy. It allows me to leverage higher amounts of my account since its only one pair but everyone has their own strategy.

A) I use standard bollinger bands to enter most trades (although not all)

B) i use daily pivot points for most exits although sometimes if i see a resistance point thats not a pivot I see what happens and close occasonally.

C) I use really tight stops and dont go below 20 pips for the most part in extreme cases 30 pips

D) I trade off of 5 min charts as for me i can see short term trends better

E) I trade japan session although sometimes quiet and also trade a couple of hour before us open until us closing

Forexstein's Journal

In this thread will be posted the progress of PARS. When safe conclusions will come of the proper functioning of PARS I will explain all the technical details of the system. Until then this thread will work as a log file of PARS. Thank you all.

Attached Images

 

small blue dots are support. small red dots are resistance

Attached Images