Tuesday, February 24, 2009

Drawing Trendlines

Trendlines help us determine a prevailing trend. Since I trade short-term, I use H4 to determine the main trend and sub-trends. My entry will be in the 15min time frame.

Today I will draw trendlines for H4 for GU. The purpose of this is to determine a profitable entry point when I use the FxHunters system.

I open the H4 chart and generally look at the trend. Is it going up or down? I spot 2 low points.

I draw a trendline joining these 2 points. I spot a third low point.

Then I draw another trendline. I spot 2 high points. While the main trend is still up, there can also be a downtrend within it. That's why you have a term called 'A trend within a trend'.

So I draw the down trendline. If the candlestick breaks the blue line and opens under it, downtrend may continue.

It looks like the candlestick has broken the trendline.

When looking at a lower time frame, Min30, you can clearly see it has broken the trend. It signals a buy but this is merely an observation. Nothing is guaranteed.

Update:

The price dropped down significantly later on. This could be due to the NEWS. I'm not sure ...

Thursday, February 19, 2009

Man Can Fly

This is base jumping!

Monday, February 9, 2009

Back With Butter