When it comes to major economic news is best to stay out of a trade until after it . No system will work when you go into the news unless there both going the same direction. Right now i am waiting until the FOMC news come out before i take a trade again.
It is very difficult to recover from a big loss, but if we learn something from that loss, in the future we will be profitable and will not make the same mistake again. I have burned myself so many times very badly still get caught sometimes but not more than my expected SL anymore.
Ok if you put SL 50 pips according to me it is good to have anything more than 50 pips TF. More is better.
If you are stop out from a trade because of the news two things can happen first may be you open position bit early did not wait until the candle close, or second may be you open position without the confirmation of small TF, based on W and D bias is in same direction.
I donāt know which pair you traded if you can upload your trade and reason behind the trade may be I can have more clear explanation.
Any one catch any pips today, I was waiting whole day for NZD / USD pair to open short position but unfortunately missed the entry.
But I have managed to get an entry on AUD / USD pair which was totally based on potential daily SnR trade. First trade of the week managed to get 100 pips.
Based on this great trade that you took, how much would you risk in terms of percentage? My reason for asking you is bcos I am curious why would u take this trade. Yes I understand that the price did touch the daily SnR, but isnāt the weekly & daily bias call for a buy? Pls enlighten me.
If thatās the case, can I also say that based on solely daily bias on Eur/Jpy, today I shall be looking for a sell as it forms a beasish doji yesterday. Aud/Jpy also forms a pin bar yesterday- also look for a sell today. I am tempting to try on this 2 trades, but I am not sure how much percentage risk should I allocate to them.
I traded Eur/Jpy on the 23October for a sell. Seeing that on the 22Oct was a sell as a daily bias, I opened the position at 1300hr after thecandle forms a bearish engulfing candle.
As you see on the 23 oct, I entered a short on the 1300hr after seeing a bearish engulfing candle. The reason I enter a short is due to the daily bias on the day before(22 Oct). Price did went down a bit but shot up after the news release, and there I was being caught out loosing 120pips.
I have 1 more question. Normally, after this kind of ābig movesā trading day after yesterday, example like GU or AU, would you still look for a sell today? My reason in asking is bcos, today we can den trade according to weekly & daily bias for GU.
Or do u take a break after gaining so much pips already?
If you see the first week of the month weekly candle closed with very long wick at the top and then all other weeks candle closed inside that week. According to the method price broke the potential support and which is now become potential resistance you can see at Daily TF. I was waiting for the price to touch that potential resistance so I can go short based on the weekly bias short (first week of the month), I am not trading outside of the method but without only the daily bias.
And I was risking only 1%.
For EJ I am looking to short yet because of the SL it will be very big, I will wait until the price come around 139.50-140.00 area to go short if I get the opportunity.
AUD/JPY also same I will wait for the price to move up more where I can put SL comfortably without any hesitation. I will wait for the price to come around 97.00 area.
I donāt know price will come to my predicted area or not, if not I will look for different pair to trade.
If I want to open position on this both pair I will go short but only when I can put my SL around SL zone.
You are correct price of this pair may be go down but it will not be a good trade if we open the position now because our SL will be very big. So wait and see if the price retrace bit more today then we can open short position tomorrow, otherwise no trade.
If you see the opportunity you should trade because it takes long time to find an opportunity. It is best to take break when you know you have done for the day or week.
Thanks for your explanations but they make new questions. I looked at the level 97.00 for the AUD/JPY I see also an other (key?) level at 95.400 Why you want to wait for 97.000? The levels you talk about can take a view days or even a week before they are reached Are you only looking for 2 pairs for all this time?
For Bias you do not look only at the last candle? (yesterday isā¦ today isā¦ last week isā¦ this week isā¦) Can you say that if support is broken (down) you look for a sell (bias = sell) and when resistance is broken (up) bias is buy? The retrace is against bias and can give some false candles
I have draw one horizontal line on the chart around the area where price touches so many times from up or down. So we can take this level as potential SnR level. But only SnR can not be the reason to open position. We need to consider the other factors as well. But SnR is where we look for other factors. Below or above the SnR line there can be many bullish daily, weekly candle or may be bearish daily, weekly candle, we can not trade in every single candle, it is possible but I want to participate in the best one where most of the components is present.
According to the method we always try to see the previous days and previous week candle for I bias. As you mentioned that there is key level around 95.40 on AUD/JPY pair but if you see the previous weekly candle was bullish so there is no chance to open short position at that price, we can open long position but I donāt feel comfortable because of the overall market is moving down so we will only wait for the market to retrace back to potential SnR for entry.
Key level in the market can be vary to different analysis by different people and also for different reasons.
Hope you understand and what do you think about the chart above.
It is always good to wait until the candle close in any given time frame. No level can give guarantee. We need to follow the method when we open position it doesnāt matter what method or system we follow.
It is true that it went way over my predicted level so I will have no trade and it is also Friday and last day of the month.
I will wait with another predicted level next week, may be I will get an entry.