Well I gave all my reason why I took that trade in the gold post that I did.
Momentum was up and price was showing respect to the Mean value so I wen’t for resistance is going to break, I’ve seen that type of scenario work out quite a few times, but essentially yes it was buying straight into resistance. If the trade worked out I was going to hold on long term.
Hanging man trade setups to me are when you get that candle formation form at a stretched distance away from the EMAs, this was not the case this time. Some people might call it a hanging man, it’s a no from me.
Here is a similar situation on gold back December last year…
See how this one played out and caused a nice breakout which developed into a full blown bullish trend.
I am now just trying to work out my trading style and how to go about it.
I am unsure whether I should take your approach and disregard support or resistance and just hope over time it works out like you have shown on your chart above, or whether I should pay attention to them… Still to work this out!
Thanks for into about hanging man. I was unsure on that.
I knew that resistance level was there, I mentioned it in the post, it was the only negative thing about the setup.
If I am going to buy into resistance or sell into support I better be able to justify it. The same goes for trading against the trend!
It still might shoot up and close through resistance, the session isn’t over yet!, that would s**t me if it did. Gold is most active after an hour or so into NY open, when the Chicago exchange opens.
It looks like an odd day! My trade of UJ has stopped out - 78.90 - 79.30 or -40pips! However, my last trade of AU has gained 180pips (1.0020 - 1.0200). Let’s look for the next trade!
What I got out of DnB’s original post about this trade was that price was being squeezed into a corner and had to break up through the resistance level or down through the moving average level. All else being equal I think his reasoning on the direction he choose was sound.
Maybe the way to play it would be to wait for the break (in either direction) to happen and let the price run a little bit to establish true direction and then jump in. Might miss a some profit at the beginning but if you end up being right and the run is large it will be worth it. However it could just as easily fall apart even after a clear break.
AUDUSD hits the resistance @1.224 with an indecision candle. The break of the low of the candle @1.0140 will be a potential shorting entry, the target will be the last support @1.0000. Pls comment on this setup!
You’re charts are different to mine, I use New York Close candle time and that’s what most people use who trade Daily charts. One daily candle = one true forex session. Alpari UK and FXDD are both NY time brokers, pull up their charts and see the difference if you want.
This brings up a question. Does your experience point to these “squeeze” patterns (for lack of a better term) tend to signal reversals or more often than not, just pull back and then retrace? I think this may be getting over my newbie head.
This brings up a question. Does your experience point to these “squeeze” patterns (for lack of a better term) tend to signal reversals or more often than not, just pull back and then retrace? I think this may be getting over my newbie head.
When price gets squeezed inbetween two significant areas and you’re expecting a breakout, in my experiance it really can go in either direction, it’s 50/50. With the gold situation there was a buy signal coupled with it so I leaned towards a bullish breakout.
I am looking at these markets thinking what a mess at the moment, I’ll probably wait till next week and wait to see some good direction. Too choppy at the moment, hate it!
I think this candle can be the first sign of weakness of the strong trend in AUSUSD, but still not enough to go short. I need to see a reversal candle in resistance around 1.02450. But it’s just my opinion
The USDJPY has shown some clear direction, might a get a buy signal off that breakout level next week hopefully.
NZDUSD looks interesting, that bearish rejection that is happening right now so far away from mean value, there isn’t really much of a level there that it’s rejecting. If you zoom out a bit you can see that line has served as resistance and support in the past but nothing to get excited about.
Looking to get into a trade I can hold for 2 weeks or more. I hate zipping in and out, I like to ride long the moves. That’s what she said
Here is a rule I personally follow with good results:
If the market it’s trending and starts to consolidate for the FIRST time I expect a breakout in the direction of the trend, but if it’s showing a consolidation pattern for second or more times then I’d expect a counter-trend breakout.
I have placed sell orders for AUDCAD, perfect beeb off of a key leven which matches 50% fib exactly and with the medium term trend, I am aiming for the recent lows but am prepared to reverse and go long if there is good PA at the 1st support area which would confirm change in trend to up
