Options Trading – Position Trading

where MA21 crosses MA55 with slight rise and sharp downturn. (See Note below)

Another example:

Fig. 8. GBPUSD H1 chart as of May, 2005: a divergence with MA10 upward crossing MA21; a brief nudge up to 1.8916 and a sharp downturn. (See Note below)

As different from Nayman and other Forex scholars, we’ll touch in detail upon the ways to detect when MACD is trustworthy as a trend reversal attribute and when it is not.

4. TA classical patterns. One can not help smiling at the author sharing a secret of “head’n’shoulders” and “double bottom” patterns, being studied by beginners at the earliest lectures on Forex.

And here goes a real key secret: in what cases the patterns are indeed indicative of a reversal but in what cases brokers trap TA pattern-fanciers? Is there someone doubting the fact that patterns are known not only to traders, but as well to brokers with their mouths watering to make a rod for the backs of lovers and connoisseurs of the above patterns, just like on the sample chart below:

Fig. 9. GBPUSD H1 chart as of May, 09-11, 2005, a classical “inverted H&S” (See Note below)

At 1.8871 there’s an impetuous upward breakthrough, the Alligator rotating upwards, MACD above zero, MA8 having intersected MA21 upwards, the Williams vaunted Awesome Oscillator signaling long entry, the Accelerator Oscillator pointing up… nevertheless, the rate reaches as far as 1.8916 and slips down to 1.8481 by 450 pts.

To be noted: much worth scrutinizing is the phenomenon of Nayman’s “Trader’s Minor Encyclopedia” and “Master-trading: secret files” purported at understanding why over 90% of traders turn losers after reading the books.

The solution, to my mind, is

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