Tuesday, 13 December 2011

Being More Confident With A Setup

As discretionary traders, we have a trading plan that regulates how we operate in the markets. We have pictures that we trade with discretion. An important factor in our trading is having the confidence in our trading plan. We achieve this by back testing both manually and using an algo.

Having said that, it should not be forgotten that traditional technical analysis can be used to provide another level of information. By "traditional", I'm referring to charting a la Edwards and McGee, Joe Ross and others for chart patterns and trend lines. I've mentioned this before in the blog but I think that with all the technology we have at our beck and call, it's easy to forget the basics.

The DAX chart below has a couple of useful trend lines. You can see how the holding and breaking of the trend lines supports my trading pictures.

1 comment:

  1. Hey EL,

    Thanks for posting Renko charts. I'm using them now, too. They give cleaner entry and exit signals.