Pinocchio Bar + MACD Divergence + Key Support Level + Fibo 61.8
The trade setup above is one of the best I’ve posted so far….
MACD Divergence
Key Support Level
Fibo 61.8
Pinocchio Bar (a.k.a. reversal bar or hammer)
This trade also demonstrates one concept… Look at the candle that is circled in orange… This candle’s low is lower than the previous two lows on the chart… Traders who trade breakouts might sell when price falls below the previous lows… In that case, they will be wrong and will be forced to buy to cover… This adds strength to the resulting rally, which probably explains why the next candle is such a strong bullish candle… The reversal bar is thus called a Pinocchio Bar (coined by Martin Pring) because it is lying to the bears that price is going to trend downwards… Bears who fall for the trick will then be trapped…
Most successful traders know that failed breakouts are always great signals… as it is in this case….
Recall my post last Fri regarding the MACD divergence spotted on GBPUSD? (You can find the post here)
That divergence turns out to be a false signal… GBPUSD continues its downtrend today… As stated in the previous post, that trade should not have been taken because of the following two reasons
The forex market was going to close for the weekends in a few hours
The divergence did not coincide with any Fibo levels
My robot building experience has been filled with fun and frustration…. The fun part comes from the excitement of the limitless possibility of the Lego Mindstorms set.. However, when trying to build more advanced robots, my experience soon becomes more frustrating than fun…
Firstly, some of the parts from my set were missing… it’s a long story behind why this set is incomplete… but anyway, that means most of the time, I got to innovate and build the robot using other parts to substitute… That was actually quite fun, except for the time wasted on trying to find parts that were probably missing in the first place…
The second most frustrating thing is with the connecting wires… The set comes with 4 such wires… and out of the four, 2 of them were faulty… thus, I am not able to connect all my motors and sensors to the robot at the same time… I can only either connect the 2 motors, or connect the 2 touch sensors… making my robot very limited in capability… and on top of that, since this Mindstorms RIS 2 is already superseded by the NXT, I don’t think I can purchase any new connecting wires…
So, that means, I probably will have to make do with what I have and build simple robots… Or… Well, I can purchase the new Mindstorms NXT 2 set… ummm…. Maybe I’ll wait till there’s a sale at my local lego shop, or some other major toy stores…
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