AudJpy

Hi Portman,

Discipline is also key. Don't try and anticipate moves. Use stops and take some profit at first resistance.

Best of luck.

Hi Remo

As a complete newbie to all this T/A, and getting very confused at this stage, this post makes total and utter sense to me and will hence forth not use line charts from now on, and maybe, just maybe my brand new spread betting account may just start going up rather than down.

Thanks Again

This is just for education purpose.
If you look at the chart below you can see how perfectly the currency pair bounced of the major trendline today. How many times have people seen this happen on chartsview. Is it fluke.
I dont think so.This is the advantage of trading of a major trend line on a first attempt basis. You could only do this type of trading if you use good charting packages and only use candlestick charts or bar charts. For me accuracy is every thing and you need much info as possible when trading with trend lines. Line charts cant give you this type of trade. If you were using line charts for this pair then you would still be sitting on the sideline waiting for the trade.


dl.dropboxusercontent.com/u/4899609/audjpytrendline.png


line chart example

dl.dropboxusercontent.com/u/4899609/audjpytrendlineex.png


The other disadvantage on using line charts for short term trading is the amount of whipsaw in your trading.Line charts are plotted on the end of day closing price basis so all those important levels where it traded at would not be registered. So if you were to trade using line charts as your trend lines then you would end up placing a lot more trades that fail due to stoplosses activating.
Also if you look at the charts you can also see what generally happens when a trend line breaks. Prices can fall hard.
So the moral of the story is ,respect trend lines and learn to plot them correctly.

The above is just for learning purpose and based on daily charts.

Nice hammer formation on this one.
id go long half way down hammer with stops below.
This is not for the faint hearted as this is one volatile currency pair

dl.dropboxusercontent.com/u/4899609/audjpy9thjune.png

This trade has been a rollercoaster ride..
I almost got bailed out but my stop was inch perfect....Too close for my liking...
I even forgot to add to my trade at the trend line due to my mind being else where
Patient people would have got in at the perfect level that i mentioned . Lucky people

Possible long half way down the hammer with stops below. This appeared right at support.
The only problem with this is that its a very volatile currency pair and the stops are far apart.
My entry on this is at 9866 which is exactly half way down this hammer. My stop is below the hammer and for added measures ive put the stop below the trend line and the horizontal support.(below 9690) so 180 points risk
If your patient then the ideal entry would be near the trendline and horizontal support area 9692 but that could mean missing the trade



there is a lot of risk attached to this trade due to the pair. This is one volitile baby and its not for the inexperienced traders