MightyOne wrote:forextrading wrote:Braathen wrote:So EU just hit a 1month+ extreme and i got a nice little pennant going
here.. what im going to do with it is another question
I will keep drawing them and try to see what i can see
But it does look cool!
Finally, I understood where the extreme is. This is the maximum or minimum price of X period of time?
In this case, I drew extreme of the month - right?
So these are the places where we play away from it.
An extreme is the highest or lowest prices of a range.
The extremes that we are interested in are older than 2 days & ones where you could realistically see yourself placing/moving a stop to if you were trading nothing but the large chart itself.
That said, do you know how hard it is to trade a monthly chart
The larger the chart the more 'stuff happens before stuff happens'; your 15m is going crazy, the daily is doing its thing, the weekly is bouncing around, & you still have to find a way to EVENTUALLY shift your focus back to the monthly chart.
Now imagine trading a quarterly or a yearly chart
That is why I say stick close to 2 days but don't ignore an epic monthly price level if you happen to be backed into one.
Now I understand about that extreme point.
I play similarly, body of a larger chart shows me the way, a small chart for entries support / resistance.