You're exactly right. This wasnt an ideal example. I was stopped out @ 1.2985. It's bearish. The trade had a 14% breakeven probability (100 pip return vs 15 pip risk) but I had the odds a bit better off that level. Looks like others did too given the sizeable collapse after getting stopped out. It was low probability but the return would have been good. I'll post up a trade more in line with what you mentioned and what I had typed earlier. It will resemble the breakout on 12/4.
I know im bouncing around and I apologize. Here's the current channel support. As stated in the original post I prefer channels. Waiting for price to touch. The GBP/USD follows this structure better than other pairs. I really appreciate the responses guys. It was nice getting the feedback. My goal is to give something back here. Sorry if I'm not doing a good job with the thread.
Exactly. My *poorly* worded comment was directed at those who choose two widely-space price points, draw a connecting line, and declare, "Look! TRUTH! A Trend Line has been birthed!" I prefer something with jussssssst a bit more substance -- like the Channels derived from Envelopes, or Boll. Bands, etc., as per Schizo's comment.
%% Exactly. I like auto drawn trend lines[ 200 period moving average........]; it avoids trader/investor bias. Adding to the fun ;more than several Ways to auto draw a 200 period ma,
Tom DeMark Trendlines, which is what I prefer, are mechanically derived from price action itself and have qualifiers/disqualifiers.
%% Exactly what TA needs; another name for the same stuff. LOL=LOL...................................................................
I selected moving averages and would have also chosen momentum indicators if they had been included in the list. Have been able to develop tradeable systems using indicators such as Ehlers Stochastic, StochasticRSI and Relative Momentum Index.