I rethought some of the support, and displayed it in this video. Will also post the trading idea so it can be tracked.
Kommentar
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Looking at intrabar activity, it's looking increasingly possible that we might do the early improbably breakout I had referenced around 3:30 in the video, and follow the "seems silly" lines.
Kommentar
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We cross the green dotted line, and it's going to fly
Hi Tradeformula ! Thank you for the amazing videos you've been making. Learning a lot. I've been learning for a few months and I'm reading Murphy ATM. I was wondering what indicators you were using : the bottom one is the RSI, right ? What about the volume one in the middle ? And I've never seen anything like the one you're using on the chart itself with the colored lines and all (not talking about the supports and resistances). Cheers ! (Sorry if my questions are silly)
tradeformula
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@ThomasDaroux, Not silly questions at all, and I'm glad you enjoy the videos!
The green & red one on the top of the bottom two is MACD 4C, (four colors) indicating momentum, the one on the very bottom is Stochastic, but only slowK is shown. the ribbon indicator on the price action is a moving average ribbon, basically multiple moving averages stacked on one another- if you search "madrid ribbon" in indicators, you should find it.
You really take time to explain things in your videos, that's great, I love it ! Keep up the good work ;)
ThomasDaroux
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@ThomasDaroux, quick question regarding the Madrid ribbon: in the case of an upward move for instance, do you wait for the shortest MA to cross all the others to confirm the trend ? How many of them do you take into consideration ?
tradeformula
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@ThomasDaroux, I use MAs to gauge momentum as it applies to trends in the market, as well as stochastics, whether they're overbought or oversold, with support & resistance guiding me. So- in the instance that we're coming up against a line of resistance (as we are with the red line now) and I'm seeing an overbought stochastic, this tells me we're heading down to the next line of support.
tradeformula
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@ThomasDaroux, to add to that, considering we're in a bearish trend overall, I think we're heading back down as I said in the previous video. That said, This isn't a trade for me, as the risk/reward isn't so great on the way down as far as I'm concerned- and that I believe the market is ready to spring to action, and I don't want to get caught. I think the entry is the notable piece, as we touch the lowest blue line of support (assuming we make it there)
ThomasDaroux
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@tradeformula, that was very clear ! Thanks for the explanation (and the picture) :)