In Trading Strategy Examples: Quick Charts

Article coming soon about measured moves on ranges. Seems simple at first glance but as usual there is more to the story. Today we popped above 3400 and spent any form of significant airtime over the level since the beginning of the year (June/early August saw constant rejections).

On a short term basis, we hit the breaks at 1.3450, which you can see below is 100% of the previous trading range. Again, article coming, but in the context of an underlying trend, when measuring distinct trading ranges, 100% is your best friend provided no longer term magnets show up in the meantime. Originally I was seeking the high 13420's as a target on a long, based on a trendline break golden ratio.

Also as usual, we follow the rules of 3: 1 leg to hit resistance and 2 following the break.

No more buying for me in the meantime / not enough yield. I DO have higher targets (1.3455-62) that remain though. But for the most part, any major orders have been gobbled up and flows look light above this area. Unless that changes I'll remain flat on this pair / no conviction at the moment beyond this point.

Trend Trading Projection Strategy

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Showing 4 comments
  • Antony Young
    Reply

    Nice one, appreciate and looking forward to more info / article on Measured Ranges ..

    Thanks Steve,
    Antony

    • Steve W.
      Reply

      Thanks for stopping by Antony.

  • Mark
    Reply

    1) Do you have an article where you list what you consider as magnets? I know the spike base is a major one but then…

    2) Regarding the three legs, I feel a little ashamed that I might have troubles to count to three correctly. Since it isn’t the first time I come up with a different counting (in this case four https://dl.dropboxusercontent.com/u/15813135/3legs.jpg) I just wonder if you have an objective way for counting legs. 🙂

    Thanks Steve,
    Mark

    • Steve W.
      Reply

      Hi Mark, I don’t have a specific article where I talk about every major price magnet, but there are tons. The ones I use on a regular basis are basically any of the measured move concepts talked about on this site, horizontal support or resistance (as in leg #2), or opposing trendlines, off the top of my head. Order flow will come into play as well from time to time. As to question #2, this is big topic, and I am writing another article about it. Been on the top of my head lately. One of the reasons many people pick up and discard Elliot wave, for instance, is because the market doesn’t look so pretty in real life as it does in deliberately drawn powerpoint presentations, if you know what I mean. It isn’t always so simple. So stay tuned and feel free to fire away when I get it up here. Thanks,

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