Wondering if you guys thought this chart was indicating a more downward trend. This was taken a few minutes ago. It hit a high that hasn’t been seen since March, 2012, and there appears to be resistance that looks like it wants to keep it ranging, or heading back down. Maybe take a more long term position? I’m wondering if what I’m seeing is vaild, or if I’m just cooking it up.
If your trade is based soley around an rsi indicator and a weekly high (don’t know your strategy) - I wouldn’t take a long term position short on the euro. But you never know hey !
I’m long until price starts dropping and it actually shows a trend reversal, and not just speculation on what might be a trend reversal.
Still holding my long position. Up 50 pips still. Did you take the short?
How long do your trades last?
An example would be how I just closed out some yen pairs earlier this week that I entered in early December.
I cut my losses quickly, however cautiously to allow price to respect the volatile nature of price action.
This allows me to hang in trades longer if they are going in my direction.
I never set TPs. I manually move my SL to lock in pips when price looks to be moving against me.
I’m active in about 20 pairs at any given time, so despite how long I can hold some trades, I’m generally placing about 3-5 orders a day to manage my portfolio.
When you look at the market as a whole, individual decisions are easier to make, in my opinion. It creates more variance in my account balance, but my floating profit continues to rise, and that’s the number I focus on the most.
I want to work up to trading quite a few pairs. Right now I’m trying to find my feet and hammer some things into myself. I’ve recently been trying position trading. And so far so great! I was just curious about your style. I’ve kept my SL at BE but I’ve been taking profit on 10% of the original position at support and resistance levels on the way down. I was curious because over the long run I’m thinking EUR/USD short.
It’s been on the rise. It ran into some resistance, but price will do that. It’s continuing to make higher highs and lower highs which is just one area to look at.
I’ll decide whether or not to put on a SL next week if it continues to drop.
Did you take the short?
I shorted right at the doji in the first graph in belief that it wouldn’t break through that resistance, simply because it was at a yearly high, and it was [I]showing[/I] resistance, and a doji. Nothing more. Honestly, I never even looked at the RSI indicator. It was based on nothing more than clear resistance levels. 480 pips, from the doji. I’m going to stay in for awhile, and see if it wants to go down to the previous support. Also, please excuse my use of “long term position”, without clarification of what long term was to me, at that point. By “long term”, I meant 1-3 days.
I was reading a post from lawgirls “trade what you see”, which brought me to the RSI indicator. I haven’t actually put her ideas to work yet, though.
RSI is good. When I first started focusing on price action I paid attention to it. It was not perfect, but it did assist in developing an edge. I believed I used 9 RSI.
I would draw trendlines on RSI and looked for breaks to coincide with price action patterns.
That’s a great idea. What’s your style these days? Still using RSI? I’m assuming it’s a “trading ****tail” type of approach, rather than a “single idea” approach, as I used in this trade. haha
That’s not foul language, by the way. It’s a drink you would buy at your local pub.
I’m so used to looking at price movement now that I don’t use any indicators anymore. I can visually spot out areas of support and resistance, trendlines, and fibonacci retracements.
Fibonaaci retracements are my next addition. By the time I got to them, I was on information overload, and my brain just wouldn’t accept it at the time. I did see a chart with it in action though, and it looks to be a great addition for anyone.
Cable and Euro moving on different direction is not a normal market condition and normally risk are higher during this times. With only a week with DFTL I’ve learned that it’s really NOT good to be TOO aggressive in trading…it’s better to miss a trade all together than be in a trade you don’t want to be in…and when you get hit for being TOO aggressive it will have an impact on your next trade, making you extra cautious and totally missing a trade you would have taken on a normal circumstances…two hits in one…