Hi, im a beginner in the world of forex and will be asking questions here so please bear with the new noob in the market.
so here i draw a channel and the market was moving accordingly and then i placed the trade because as i have read in the course of baby pips that market may rise after touching the diagnol support. but it went down from there. so what i am trying to ask is your analytical opinion on this channel and please tell me the following:
- Is this channel drawn correctly?
- how would you trade it and why?
- What do you think will happen to market or what signal is market giving based on your candlestick knowledge? will it go higher again or will it break it?
will be looking forward to your reply.
Channel drawn correctly.
Base on this chart alone, info derived
A) bullish channel
B) price breached lower border of channel
C) HH an HL show bullish trend
D) Last HL price level awaiting a test. Will price bounce or breach that level? I duno. Since bullish channel lower border breached, i’m inclined to gamble on another breach of HL support level.
A) Candlestick knowledge alone may not be adequate, nevertheless daily candle still making higher highs, demonstrating bullish momentum are intact
B) Bearish divergence from RSI14 and price suggestive of forthcoming reversal, when it will occur i duno
C) RSI pointing downwards, immediate momentum bearish
As of now, my answer is that it is still a possibility that price may go higher, because immediate HL have yet to be breached. Since lower border of bullish channel is broken and RSI 14 is showing immediate bearish momentum, price is so close to HL, I’m inclined to think that hourly candle have high probability of closing below lower border of bullish channel and breaching immediate HL price support level. Even if price go below HL level, the possibility of price going above HH or upper border of channel will always be there. The Question to answer here is the probability of that happening.
1 Like
woah , dude thank you so much for your reply, really appreciate it . as i said im just a newbie so don’t know much about indicators and didn’t what you said about bearish divergence from RSI 14 and price suggestive of forth coming reversal.
i opened a trade last night for sell, as this is a demo account ($200) i let it run to see where it will take me after market opens monday.
i opened the sell trade at 1.24730 and market closed at 1.24786 with me at 56 pips negatives.
so what do think about that?
more over i am reading naked forex and i am in the elementary section of the babypips course and studying daily . Any thing you might wanna suggest? regarding learning or trading or anything at all .
again, appreciate you taking out the time to reply with such elaboration.
Peace!
That is -5.6pips and not 56pips
Read up
I suggest you think twice before venturing down too deep into the rabbit hole.
Forex trading is a F&%#@×+×@÷#=$/% business
2 Likes
LOL, that is an amazing illustration and i have seen this even with demo trading. thank you for the advice. i am trying to trade demo and connection my emotions with the virtual money as if its my real hard earned money so that i can experience demo as real trading and it stings a lot when i lose trades. i haven given myself 6 months to learn and trade real money so right now trading demo while educating myself with the basics.
Will be posting here often and looking forward for your valuable opinions and advice in my future posts.
Thanks again. You are Awesome!
1 Like
