Wednesday. The bond buying program was leaked to the markets, which was the reason for the sudden bullish rise. I was short on Wednesday, but luckily got out with some profits.
Thursday. ECB press conference. Markets initial reaction was a bearish 80pips drop, followed by a dramatic 80pips bullish recovery 2 hours later.
Friday. A +175pips bullish upmove in 1 day. It is been a loooonnggg time since we have witness such strength in a single day. I presume the august summer holidays for the European and American traders are over?? I am not sure, as i am from Asia and there are no summer holidays here. We are definitely in for more volatility soon. And the market is ready to trend big from this month onwards until early December.
After last week’s decisive bullish breakout, EURO seems to be on a bullish train. I am expecting EURUSD to do a possible re-test of the pivotal zone 1.2620-50. If price do touch 1.2620-50, it is a good area to place your long positions.
If strong demand is present at 1.2620-50, price should target the next resistance zone of 1.3000. This is a trade which i like to take. Low risk of 30-50pips, and high reward of 200-300pips.
Long near 1.2620-50
Stop loss below 1.2600
Final target profit 1.2980-1.3000
Hi BigPippin…thanks again for your concern…we r very happy for your daily chart reviews… :7::7::60:
and i have one small question for u…but its big for me…
that is you are placing …
Green – previous day high and low (PDL)
Blue – previous week high low (PWL)
Pink – day open price (DO)
Purple – week open price (WO)
Black – major (00s) and minor psychological (50s) handles (will also be called MaPs and MiPs)
my question is…
why u r taking previous day high and low? why not some other like 2-days high and low or 3-days high and low?
is there any specific reason?..like that week high and lows also…
i am very eager to know about that daily setups…
i am ll"bit poor in english…so can u explain me in a simple manner(simple terminology)???
It will be very interesting on tomorrows chart after todays chinanigins ,ie german court rullings and the dutch election.,might be a "sit on hands day:maybe.
Here ya go! It appears you’re right buster48 as the market mainly consolidated, or in your words, “sat on its hands,” ahead the German court ruling. When the German court deemed the ESM bailout fund legal, the pair rallied above 1.2900 before consolidating around the 1.2900 handle during the U.S. session.
Help me figure this:
21 September 2011 saw the announcement of Operation Twist which was not unanimous, same with QE3 yesterday which is why I am a whee bit lost.
The reaction of Silver - an industrial material - fell through the floor boards (from 3980 to 3000 in a mere 48 hours) September 2011.
This time round its reaching for the stars! Dont get me wrong, I had a pipping good trip. Now please tell me what I am missing.
Also, will it reach the moon? I’d like to stay on board for the landing!
I gave a live call to short EURUSD on Friday. Click on link. This trade turns out to be a loss. EURUSD slices through this resistance zone like a sashimi knife. The bulls are firmly in control this week after Wednesday German court approval on ECB bond buying and Thursday FED QE3.
However, there is one important rule i wish to share. When this trade went wrong, i got out with a small loss of -35pips. I am immune to tiny losses. Tiny losses do not bother me anymore.
In the beginning of my trading career, i would not acknowledge my losses. I would not cut my losses. I would wail, cry, pray, play pretend for my losses to magically disappear. I remember this rule. The only way for any losses to disappear is to use your stop losses. The only way for any losses to be gone is to cut it when it is wrong.
Trading is a mind game. Train your mind to accept small losses.
