Tuesday 14 September 2010

Euro$ nice example

Here's a nice little trade setup using reaction lines and using the B-Line stochastic indicator. The RL's are all drawn automatically every time i draw a median line set and can be extended outside the upper and lower MLP's and warning lines can be added.
I had watched price action all day and so far saw that price was reluctant to fall futher after the morning sell-off. Price then started to walk the line (LMLP) & will normally fall through after three returns but price repeatedly help bang on the line where there was also the dashed red support of a Reaction Line. Using the bounce of the short stoch ribbons off the long B-line where indicated i had an entry at 1.2852 with a 5 point stop but had price fallen through the LMLP i could have closed the trade instantly if i had seen a new candle open below the line and thus closed with minimal loss of say 3 ticks ( plus bid-off spread). Price then continued agonisingly to walk the line but it was clear that it was a matter of time before it broke up (or down). The exit at 1.2885 is self explanatory at the arrow point
(the arrow should be a bit to the left but i couldn't position it there on the chart for some reason so its slightly to the right) where both the ribbons and B-line were bang on the roof and price would have to come back and retrace. The point was the CL of two ML sets.
PS: I have tried to incorporate several indicators such as the B-line indicator to help entry/exits
in part because i use the Ensign 'Buffy' template and there is plenty of info available on this system which i have also used as a simple indicator in Metatrader. ( heres the same info on an Ensign 1 min chart)













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