USD/JPY dropping fast

[Fishmasterdan]

.....

Got it at 114.50 short
Got out at 114.27

back in at 114.10 short
out at 113.94

Whoo hoo

[Jayson_Wonder]

Originally Posted by Fishmasterdan

.....

Got it at 114.50 short
Got out at 114.27

back in at 114.10 short
out at 113.94

Whoo hoo

What is it going to do now is the question. I am staring at the charts trying to figure this out.

Are you playing for real or with a demo account? Just curious..

[Fishmasterdan]

Demo right now.
support 113.8
resistance 114

Looking for a break out of those lines. Once it breaks out I wait a little to see if it is a false break out or not.
I also use the VT complex trading system that is offeres through VT trading software.

A few other indacators I am working with is the MACD histogramm. It needs to be heading in the way I want to trade (above the 0 line for a but below the 0 line for a sell).
Trying to figure out a system that is consistant. I am close to 70% success on trades right now.

[Fishmasterdan]

O ya forgot I thing. I use the bollinger bands for most trades. I wait for the price to break out of the bands then look at the MACD histogramm and the 10day 50day moving average to see if they are all in my favor.

The biggest thing to look for is support and resistance lines to make sure it is breaking out of those lines.
For me the biggest thing is to be patient and wait for my indactors to line up.

[Jayson_Wonder]

Originally Posted by Fishmasterdan

O ya forgot I thing. I use the bollinger bands for most trades. I wait for the price to break out of the bands then look at the MACD histogramm and the 10day 50day moving average to see if they are all in my favor.

The biggest thing to look for is support and resistance lines to make sure it is breaking out of those lines.
For me the biggest thing is to be patient and wait for my indactors to line up.

Great tips! I am havign problems identifying support and resistance lines. What or how do you acheive this?

[Fishmasterdan]

To start with I am no TA expert but I will tell you what I think I know.

Support the lowest point the currency was trades at. For example people were short a currency until a certain point when the longs over powered the shorts and the stock began an upward movement.

Resistance. the highest point at which the currency was last traded at. The longs were over powered by the short.

Right now it apprears to be forming an asending trend. On the 5 min charts
When the upward trend gets near enough to the resistance the stock usually jumps in the upward direction, a good time to get in long.

I have a buy order in at 114.05 that is the point I think the asending trend is going to break out in the upward direction.

[Fishmasterdan]

I know there is some people here that can explain it better.

There is some good info out there on support and resistance.

investopedia has good info if you see a term and are not sure try investopedia.com for a quick refrence and ask alot of questions

http://www.investopedia.com/articles...cal/061801.asp

[Jayson_Wonder]

Thanks, I did read up and have and understand what support and resistance are but I am struggling with how to draw lines on the charts connecting ongoing points of resistance or support together over time.

Mabey this is overkill but it seems so much easier to read and veiw when I draw on teh charts. I think practice is the key for me at this point.

[Fishmasterdan]

Right now I removed my buy. Its is forming a http://www.investopedia.com/terms/c/...ionpattern.asp


I dont know what your are using for charts but the easiest way for me is to print them out and get a ruler then just line up the tops of the CANDELSTICKS then the bottom of all the CANDLESTICKS

[Fishmasterdan]

Look at how RPM draws his lines

http://www.hotstockmarket.com/forums...ad.php?t=28602


Remeber when a stock forms new highs or lows it is now the NEW support or resisance . It may change 5 times in a hour or not change for hours.
Mind you most of this is for quick flipping or intraday stuff.