Best Thread Live Cable Trading
Zinger said:
You can ask, although I'm not sure I have a decent reply!
Okay, to a newbie cable trader the first thing I noticed it that there tends to be a band between which cable messes about trying to decide which way to go. Once it clears that band it tends to hit the top or bottom trendline (on the 4 hour chart, which is what I'm looking at).
Look back at around about the 19th and you'll see it goes up into the 1.76 - 1.77 band, goes sideways a little, breaks out, hits the top trend line, drops back into that band, breaks out and hits the top trend line again, drops back into the band and then hits the top trend line yet again on the 27th.
Now when it drops back after the 27th it seems to do its messing about in a band 100 points above at 1.77-1.78. It drops down, messes about in their, breaks the band and drops down to the bottom trend line.
Now it's coming up again and is in that band. Using the principle of "assume an instrument will continue to behave like it has in the past unless evidence show otherwise", I'm guessing that a breakout from that band will indicate the longer term direction.
I didn't even bother with support and resistance lines here as I just thought I'd try a purely 'visual' approach and see how it pans out.
Probably a load of old tosh I've just written there, but one has to learn!
Mornington Crescent
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cable may be resuming its downtrend
any moment now ?
any moment now ?
