It’s mooning! Is that a term forex traders use?
Anyway, up over 8% in the last week, 20% over the last 3 months.
I’m new to this, so have no clue how far this can go up, since it looks like price hasn’t been this high since 2014.
I just closed out my trade that went +140 pips. But price came down almost 50 pips in the last hour, so I decided to take my profits and run.
How do you manage a trade like this?
It reversed literally a few pips from where my original to was set. However the move has been so strong that I moved it up to see what happens.
I don’t think the move is anywhere near done. It was up at 125 in 2007, so got a lot of room to go yet. We might see a retracement or range for a while, but when it breaks above 107.3 then there’s very little structure to predict what price will do.
This mornings news is that the Yen inflation rate is being kept steady at under 2%, which signaled a downward reversal trend. The good news is that the Yen pairs are generally consistent - and would only be affected by key fundamental news.
Yesterday, it was plain sailing, today not so - which will apply to many other pairs. Whether it’s a key retracement or a modest one will be clearer during the London session.
Knowing where to exit a profitable trade is the hardest question in trading. A clear entry tactic helps.
The reason I say this is that if you exit with profits, you are able to set a new entry order at a price level where it will be triggered if the trend resumes but will not be triggered of the trend has failed.
Any price weakness in an uptrend is a potential entry pattern: likewise strength in a downtrend. Just don’t be greedy, you can always get back in.