In this image at the end it says that you hold onto your positions hoping for it to drop but then it climbs back up.
Isn’t it climbing back up a good thing?
If you go short on Eurusd it basically means you think Eur will depreciate in value against Usd.
So, if price goes up this means Eur is appreciating against the Usd, the opposite of what you want it to do
If you had expected the Eur to appreciate against the Usd, that would be going long
Thank you,
Based on that, the eurusd would be the opposite of a usdeur chart right?
Also, when it says to exit the shorts, it means ti start going long?
Exiting short is a term refering to clothes?
Exactly so.
I don’t think there is such a thing as a USD/EUR chart, though.
Normally, there’s an established way for a currency-pair to be listed, and in the case of the Euro and the Dollar, it’s always EUR/USD (as far as I’m aware).
There [I]are[/I] some exceptions to this, though: for example, the Euro and the British pound can be traded (in some places) as either GBP/EUR or EUR/GBP, and those two charts are exact inverses of one another.
It means entering a long order of the size which will cancel out the currently-open short position, leaving you “flat”.
That, too. 
Hello, apioverde
I suggest that you ignore the Parabolic SAR indicator, until you have a firm grasp of the concept of going short. Here’s the reason:
The Parabolic SAR is a [B]stop-and-reverse[/B] system (that’s what SAR stands for), which means that a trader using the system is [B]always either long or short the pair being traded.[/B] Each long position ends, not with a simple exit, but with a reversal to short. And each short position ends with a reversal to long.
The graphic you posted represents a technique for looking at the Parabolic SAR to signal simple exits — rather than using it as designed (by Welles Wilder). In my opinion, if you are confused about “going short”, this Parabolic SAR technique is going to confuse you further.
I suggest you go back to the Babypips School and study the concepts of “long” and “short”, until they’re burned into your brain. Then, return to the technique in your graphic, if you’re so inclined.
Hi Lexy,
You’re right that the EUR is always the base currency in EUR/USD (and in every other EUR pair).
Here’s a brief look at the “hierarchy” which dictates which currency is the base currency, and which is the quote currency, in any pair:
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Thank you guys
Didn’t realize there was a “sell” button, i thought there was only a “buy”.
One additional question, given that a pip value is constantly changing based on exchange rate, what is the use of a pip?
For example given the bid/ask for eur/cad: 1.5000/1.7000
Buying eur/usd would give me a pip value of 1(eur)*0.0001(cad)/1.7000(cad) = 0.00005882(eur) per pip
If it changes to 1.6000/1.8000 the pip value would be
1(eur)*0.0001(cad)/1.8000(cad) = 0.00005556(eur) per pip
Which pip value should one consider? Is putting a stop-loss order in pips different than an X amount of money?
Adding to that, when people say they have a 100pip profit which pip value should one take to make the calculations?
Why are you asking about pip-values based on a hypothetical BID/ASK spread of [B]2,000 pips?[/B]
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Hi,
You really need to continue to study at the school on here, also open a demo account with a regulated broker so you can practice as you learn
Well, going short means you are going to sell any trading pair! Like, short for EUR/USD means, sell trade on this trading instrument! On the other hand, Long position means, Buy trade! Actually, institutional Forex traders use this type of language! In addition, I see few brokers also use these languages on their trading chart! Hope, this help!