Author Topic: Technical Analysis in Forex Trading (Read 50088 times)

daworm · « **Reply #15 on:** Mar 10, 2010, 03:21 AM »

^@bm

Ano reason why fanline works ? Aside from it being a chart pattern that has high historical success rate

beast_master · « **Reply #16 on:** Mar 10, 2010, 10:52 PM »

Fan lines are very good signals because they represent an end to a bull market when the 3rd line is broken.

The basic principle of fanlines is that of a diminishing momentum theory. When a first up trendline in a fan line is formed say trendline 1, it has a strong momentum because it is the steepest. When the 2nd up trendline is formed we can say that the momentum is not as strong as the 1st trendline because it has a lower rise. The 3rd trendline is the weakest of the 3 therefore a break usually is a reversal. There are cases where fan lines come in 5 or more but in general most cases I have seen breaks the 3rd line already.

ferrariEverest · « **Reply #17 on:** Mar 11, 2010, 11:09 AM »

beast_master,
salamat sa insight...

daworm · « **Reply #18 on:** Mar 12, 2010, 09:44 PM »

@bm Salamat din..

I just shorted blindly AUDUSD on 91.786 base on the above ...

ferrariEverest · « **Reply #19 on:** Mar 13, 2010, 10:22 PM »

daworm,
are u holding this as a long-term o short-term trade?
kung short-term ok lang... but i can still see aud strength in the horizon.

if audusd is bearish short-term, i'd like to see it break 0.91 with momentum. i think there's still a chance that it can go higher, test the 2009 high (0.94) or even breakout higher.
Let's see what it does this coming week..

just my view..

daworm · « **Reply #20 on:** Mar 15, 2010, 08:37 AM »

@ferrari

I'm a short term trader but was planning for this trade long term if SL wouldnt be hit. But unfortunately, it was hit at BE when I woke up this morning. Ang laki pala ng interest ng pair na to