so Ideasonscribe asked for some more information on why im making a trade etc. Bearing in mind Im very much a noob happy for peoples opinions.
I looked at the USD/CAD tonight. Im looking for sell options as the Weekly has been on a massive downward trend for couple of months and broke its upward trend line very strongly. (See bottom chart green line) The daily is showing a contained down ward trend as well. (Top left chart green lines). Everything is saying sell... however i haven't.
Main reason risk management and stop loss. without wanting to be fake stopped out, my stop would need to go on the top green line on the daily chart (see orange line) if i do that i am not sure the pair has enough legs to at least double the risk. The red line on the daily is showing potential support toward the left hand side.
Because of these reasons ive decided to back out of this trade. I will keep an eye on the pair but not going to enter right now.
any thoughts? am i nut case? anyone else looking at these pairs?
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