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Message: [QUOTE="andrewkin, post: 63504, member: 29351"] [b]Using FMRL[/b] [B]One Hour Chart - each bar represents price movement in one hour[/B] [ATTACH]4678.vB[/ATTACH] This chart shows FMRL and 3 Moving Averages which show the price trending down. [B]Four Hour Chart - each bar represents price movement in four hours [/B] [ATTACH]4679.vB[/ATTACH] This chart was copied at the same time as the one hour showing similar price movement. [B]One Day Chart - each bar represents price movement in a day[/B] [ATTACH]4680.vB[/ATTACH] The price direction in the daily chart is not so obvious. Suggests price may be turning. [B]Weekly Chart – each bar represents price movement in a week[/B] [ATTACH]4681.vB[/ATTACH] The same data, recorded at the same time, shows the price trending higher. [B]Fifteen Minutes Chart – each bar represents price movement in 15 minutes[/B] [ATTACH]4682.vB[/ATTACH] The price seems to be going sideways in the 15 minutes chart but wasn’t able to get past the cluster of three (daily, weekly and monthly) FMRL levels which resisted the trend. [B]Seems to Mean[/B] The long trend according to the weekly chart is going up but the daily chart is indicating that the long trend may have gone into reverse. The short time period charts also suggest the price is now going down. [U]Is it safe to sell yet? [/U] Let’s see what the four – 50, 100,200, 500 - Moving Average levels are saying. The only ones still going up are 100, 200 and 500 in the weekly chart where there has already been enough change of direction to influence the 50 MA. So the price may be in the process of reversing or have already reversed. [U]But has it? [/U] The 15 minute chart shows that what looks like a really thick FMRL level is in fact made up of a cluster of daily, weekly and monthly levels. It seems reasonable that if the price can get past this high level of resistance it can carry on to the next level of resistance. The next monthly FMRL is currently at 1.34369 so 200 pips target profit seems possible. [U]But beware! [/U] Prices tend to move in zigzag patterns, which means that although the price is trending down it may still do some significant bouncing up on the way down. So always make sure you have enough capital in reserve to cover any temporary unrealised losses, called drawdown, on the way to your target profit. [B]It is unsafe to be greedy and trade too big.[/B] [/QUOTE]

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