In every Best Practice (H4T) class, it is always mentioned that you should have the right winning mindset which is to always assume that the trend will continue.
Looking at AUDSGD on the D1 timeframe we can see a few things which would make this a good case study.
- Price has been trending downwards since last year (2013)
- No signs of reversal (chart patterns, H4R signals)
- Price resisted by previous D1 box lows
- Ultimately price needs to close below the next support zone for it to go lower. (Aug 2013 low)
Zooming in to H4, we see a familiar pattern.
- Point 4 meets with a F8 which confluences with previous D1 resistance (D1 box low + Fib8)
- Next immediate support which price needs to clear to go lower is the low of week 51 which confluences with F6 (H4 box high + Fib6)
Finally, always remember there are checks you can take note of for trade management.
- Check for support levels which could turn your trade.
- Using a Fib-R drawn from pt1 to pt4. Price needs to close below F6 for it to have the possibility to head to pt1. In this case, you can note a confluence of this F6 & pt3
Our next Best Practice lesson on 9 Jan 2014 will be on H4T. So if you wish to find out more on how to identify, enter and hold on to a trending trade, you can either email forex@terraseeds or call Cynthia @ 64923196 to register.
Last time, many things that I wanted were just dreams, now I see them as possibilities. I’m looking forward to own pent-house suite in Manhattan overlooking Central Park because forex trading with Tflow® makes it possible. Find me on Google+