Cornixforex, Thanks on a great journal! This is one of the better journals, if not the best I have seen since the original Nodoji journal a couple of years ago. The information provides enough details to be useful , yet is very easy to read and follow. It has allowed me to challenge my trading plan and to also add some ideas to test at a later time! Thank you for taking the time to provide your insights! Wolf
Thank you for the kind words, Wolf! NoDoji is great and I am proud to consider her my friend and colleague. Really glad that you find the journal useful. I'll keep posting examples of good technical setups, which I consider to be worth attention.
Eur wedge with the bus parked on top. A rising wedge has negative expectations and the topmost Short was pretty easily identified in the 1 - 5m charts. There are many ways traders will play this. I try to get the reversal at the top so that I capture the energy attacking the baseline. If we break down traders will take the break but there is a danger with the energy expended that PA reverses back to the TL and then drops - much the same as I predicted on yesterdays Dow move. The earlier entry seems higher risk, but if you have the tools it is low risk with a much tighter stop and great RR. The wedge top daily signal is easy to read - coming into resistance the bodies get smaller and the tails of pain begin to ask questions.
Here's an example of how trader's trick entry can provide safer play of classic reversal patterns in choppy environment and even against the strong trend. http://www.cornixforex.com/2012/02/1-2-3-reversal-setup-traders-trick-entry/
Yea, trend is surely up today right into the very good German ZEW data. So shorts only are good as scalps.
CF , Any advice on redrawing the trend lines? As in the chart the first steeper trend line is already violated, and one was looking for going long on the pull back. You make a new trend line if there is a lower low, and now wait for the new trend line to be broken ?
I usually add the new one and keep both for some time, until the old one obviously does not act as possible S/R anymore.