GKP

hi food4thought
every trader is different .
With trend lines it all depends on what type of trader you are.
Quite a lot of people on here day trade so using end of day charts wont be good enough as you need hourly time frames for early entry.
I use extremes and end of day charts do not show that.So totally no good for what i do.
I dont agree with the comment about most market participants use closing price.So you have to use it or else its foolish??????...Most market particpants lose so following them is not a good idea.
You should never follow the crowd.
Again its all down to what type of trader you are.If it works for you then stick with it.
here is a few examples of the difference between an end of day trend line and my extremes on a candlestick chart.

End of Day using USDGBP currency


Extremes using Candlestick


from the above example you should be able to tell which one is more effective and the big difference in them.

GKP End of Day


GKP extremes using candle


Theres not much in it when your talking short term on these but if you look at it from a long term view then the lines do appear far apart.

Dont take it the wrong way but i thought id better show the difference between the two.

Again its all down to what type of trader you are.

remo

Food4Thought wrote: Well I hate to say I told you so. The 162 area was a clear bottom and long term support back to 2009 as I mentioned several times on here.

I think that many on here draw their trendlines incorrectly. You have to use the closing prices for trendlines, that is what the majority of market participants use so it is foolish to do otherwise.

I also think that alot of traders overcomplicate their analysis using too many indicators and complicated wave therapy

My advice is to keep it simple. My target is still a 50%+ gain from 162 within two month which would need a gap close at 230.

No offense meant, just giving advice as I see it.
GL to all.
F4T

Food4Thought wrote: Hmmm, lots of negativity on here whch seems a little odd given the technicals. Positive divergence on MACD and a positive tick. In fact all indicators look pretty good to me. Maybe some missed the entry point.

Last time the sp hit the long term support line was 29/6 and before that 4/8/11 and both provided sizeable multi day bounces.

Well I guess the fiscal cliff will decide how the year ends and begins but if tonights session is positive IMO we are looking to test 203 and 206 at minimum in coming days. If not 162 is a bottom in any case for me not to be revisited.

F4T

Is here a potential head and shoulders pattern here or am i imagining things?
gyazo.com/9a0181ea5446b0326f28b13e52797eb9

Well I hate to say I told you so. The 162 area was a clear bottom and long term support back to 2009 as I mentioned several times on here.

I think that many on here draw their trendlines incorrectly. You have to use the closing prices for trendlines, that is what the majority of market participants use so it is foolish to do otherwise.

I also think that alot of traders overcomplicate their analysis using too many indicators and complicated wave therapy

My advice is to keep it simple. My target is still a 50%+ gain from 162 within two month which would need a gap close at 230.

No offense meant, just giving advice as I see it.
GL to all.
F4T

Food4Thought wrote: Hmmm, lots of negativity on here whch seems a little odd given the technicals. Positive divergence on MACD and a positive tick. In fact all indicators look pretty good to me. Maybe some missed the entry point.

Last time the sp hit the long term support line was 29/6 and before that 4/8/11 and both provided sizeable multi day bounces.

Well I guess the fiscal cliff will decide how the year ends and begins but if tonights session is positive IMO we are looking to test 203 and 206 at minimum in coming days. If not 162 is a bottom in any case for me not to be revisited.

F4T

Yep, I'm happy to concede that it looks like I was wrong. 217p was obvious resistance so a bit of consolidation from there should be expected. If it does make a new high above 217p without going below 187p then there will have been 5 waves up which should confirm a new uptrend IMHO.

I have an active p&f target at 224p so the gap area looks to be the target for now.

true strength will come with a close abv that gap and esp 242/5. Macd has crossed on the weekly and needs to get abv that 0 line

i would not want a close below 198/96 level, as when it does it sells of every time.

nevertheless looking good so far.

This break and hold seems very convincing to me.

About time imo...