Chart of the Week: FX Update February 14, 2018

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2 Comments

  1. Michael Macrae

    Great content Hima. I had a question during your segment presenting the weekly chart of EUR/USD. Was wondering why you did not have your trendline crossing the top of the high point during the brief break above your trendline at approximately the bottom marker of 14 plus one hashmark. I am still a newbie compared to you so pardon me if this seems like a dumb question. I had read Victor Spereando’s book Trader Vic a long time ago and he said the proper construction of a proper trendline was Hi to Lo (for any given timeframe) without a break in the trendline. Thanks for listening!!

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    • Webmaster

      Hey Michael! Here’s a message from Hima:

      “Hi Michael. I too learned a “proper” way to draw trendlines when I first started with analysis and trading. With time and experience, though, I started drawing trendlines that didn’t always fit the standard rules but did clue me in to key price action and potential setups, which is the underlying value of any tool. So this would explain any variance I have in my trendline drawing, such as this EURUSD example, vs. the traditional approach.”

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