In response to Leon on dontgiveupyourjob (A very interesting blog if there ever was one!!)
I thought I would post my opinion on his latest question.
"Does this class as a swing trade?"
In my view if he got in exactly where he positioned A in the diagram then he took a speculative position.(A Bet NOT a trade)
If he got in four candles further on from the A when the Selection had broken the resistance of 4.7/8 as indicated at the start of the chart along with a stop loss around the previous 4.4 bottom with an initial 3-1 ratio sell at 6.0 then I would have said he was in a fairly risk free swing/scalp whatever you want to call it but at least it would be a trade.(Although I would have a question as to what led him to believe it would make 6 or even the 6.6 heights but that is for another day)
This may all sound like mumbo jumbo but if you look at the graph below I think it illustrates the point very well.... with the hard right handside in place what in the market is telling you to buy or sell?
In my humble opinion nothing...
There is nothing in that picture that gives me any reason to believe I should do something.
I am not saying that there is anything wrong with watching for news and predicting how the market will react but from my perspective this is closer to studying form and other fundamentals than it is to technical analysis.
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