Very nice consideration. I forgot to look at the weekly chart before enter the trades, and now I’m in. Even if I’m in temporary gain and the trade gone in my favour, I’m considering to put SL at BE just in case… Let’s wait for DnB thoughts.
Hey guys,
First of all I meant to say support sorry, I was thinking about another chart in my head.
Second, I don’t say price HAS to come back the EMAs, I say when price is over extended there is a high chance of a correctional move back to the mean value, in strong moving markets price might float above or below the EMA without touching it for a few candles. Just remember nothing is an absolute certain in the market, we just want to play the odds in our favor. If price is extended away from the EMAs then it would be risky trading into further extension of price form the mean because of the high chance of a correction.
Anyway, I am looking at GBPAUD. I don’t see a signal here? What were your reasons for going long.
The chart is a nice hot spot for a bullish signal to form, but nothing on my charts. Let me know 
I’m short on AUDUSD and AUDJPY and the daily chart looks really good. Now, the fact that the weekly is overextended, is a thing I have to consider before enter a trade or I just trade the daily and forget about the weekly?
For me a “high chance of a correctional move back to the mean value” on the weekly is enough not to take any short on a daily, isn’t it?
Where are in your opinion good places to take profits on this 2 trades?
Hope to be clear with my poor english guys…
It’s the Daily chart which is the boss. What ever is going on with the Daily chart should weigh heavy on your trading decisions. The weekly chart is more of a longer term guide. In strong markets the weekly EMAs can get left behind because they are really slow to react. But you’re right if the weekly is way out there you have to consider the chance of a possible correctional move. But there should be a tip off on the Daily chart that this is going to happen.
Great.
I’m a bit confused on how to take profits that is one of the most important things on forex trading. After reading your amazing course, I still have some doubts on TP. What are your opinions?
For example in AUDUSD and AUDJPY which are the areas you take into consideration to take profits?
Great work DnB and many thanks to share your knowledge to the community
I think there is some confusion going on with EMA’s. First off, I don’t consider 10 & 20 EMA’s to be as reliable on a weekly chart -personally I use 8 & 21 EMA’s applied to close only on daily chart-. Second, remember we are always trading with the overall bearish trend, so chances are the old lows are gonna get wiped out since Yen pairs trend heavier than others.
Comments welcome.
75.00 was previous support for AUD/JPY. This is a nice price for taking profits for several reasons:
- Psicological price.
- Previous support.
- Provides nice R/R ratio.
Do you thik prices could go so low? 75.00 would be a dream for me… Anyway I’ve placed SL on 75.00. :53:
Do you thik prices could go so low? 75.00 would be a dream for me… Anyway I’ve placed SL on 75.00.
Lol, I don’t know what the market is going to do, Greece could default tomorrow and there will probably be a 1000 pip move in one day. I just play it candle by candle. What risk/return target are you aiming for. Set your target there , or near the closest major S/R to your target area.
Second, remember we are always trading with the overall bearish trend, so chances are the old lows are gonna get wiped out since Yen pairs trend heavier than others.
Yes, this is what I’ve said a few times. We are in a down trending market, we are trading with the momentum, once we get in our trades then just ride the trend down, don’t freak out so much about support, wait and watch to see how the candles react and close when interacting with the major levels. Chances are they won’t hold, if they do hold you will usually get some price action hint. Ride the trend down, be patient and grab them easy 300+ pips
Think big picture. Imagine if you just held this for weeks, and the market just kept on sliding down. This is where the money is at, not scalping.
I wasn’t actually plannin to go long, infact, i don’t see any such signals too. I saw two indecisive cadles on weekly timeframe at the resistance, so thought price is heading down and would go short if price dropsdown and pullbacks to MA dropping some short signals. But, as u said, weekly does hold much wait. I will wait and see what the price is going to do.
Gotta change my thinking about support/resistance. I should have known when momentum and trend are strong, S&R are easily broken.
Hi DnB, really been enjoying your thread. Just wondering what you do for TPs - do you just set a TP 3x your potential loss or set them at S&R? Or trail stop?
Thanks!
By default yes I just got for 3x,
It’s up to you what you want to do with targets, just make sure it’s at least 2x more than you risk. I never use trailing stops, sometimes I might trail my stop down the highs of the candles or under the lows of candles in an uptrend. But I usually just set my stop and leave it alone until the trade is well into profit. People get jittery and move stops to break even too quickly then get stopped out on retracements only to find the trade continued to move in their favor and hit target after all.
There are times I just set no target price and play it candle by candle. But for beginners it is best to make a solid plan and have a defined target plan, set your target/stoploss and let the market take care of the rest
Hi DnB, thanks for the quick reply. I like that you generally just aim for 3x the stop because it seems to me that whilst S&R are often respected, they are also often ignored completely and it seems to me that they are kinda useless sometimes.
You generally set your stop at the high/low of the signal candle right?
Thanks.
This is a counter-trend-not-suitable-for-newbie-traders trade, but the setup seems valid, although Im not gonna take it personally, just for fun!
This is a counter-trend-not-suitable-for-newbie-traders trade, but the setup seems valid, although Im not gonna take it personally, just for fun!
I hope not!, that’s not a long setup far from it. It could bust out higher just purely due to the fact anything can happen, but you should just be looking at this market and thinking “sell”
Actually I was thinking about closing my short manually and take the loss. What do you think?
I don’t want to give direct advice on your actual trades, I don’t want that weight on my shoulders lol.
This is all I am going to say.
If it was my trade would I close it, No I wouldn’t. Why?, I entered for a good reason, I entered with the trend so I am going to ride it out. If price moves against me and stops me out so be it, I know in the back of my head I have applied excellent money management.
Just so you know I also have a short position on EURGBP, it’s been slow I must admit, but sometimes this happens and you have to sit it out, if you emotionally intervene on your trades because of ‘fear’ or ‘anxiety’ and then the trade breaks that support level and absolutely explodes, then you’re going to be angry with the market and yourself and that could kick off a wave of bad emotional responses. That’s why I just set my trade, I don’t play around with the stop and just let the market do it’s thing.
If that was a strong bullish signal I would have concerns but it’s not, the candle is small in range so I am not worried. Even in strong trends like this one, I’ve seen really strong counter trend signals been eaten up quickly.
In the end it’s up to you guys what you do with your money, but just ask yourself, are exiting for a good reason or just because you’re getting emotional?
Many thanks. Exactly what i needed to hear.
Speaking of riding the trends, remember the EURJPY indecision breakout that we talked about?
Just goes to show how effective trading longer term is. How hard would a scalper have to work to earn these sort of pips.
Just got out of this one! Banked 367 pips. Lovely.