DislikedHi there,
Took the losing trade today. Was wondering whether my analysis was correct. What were your views on this one?
http://img10.imageshack.us/img10/7334/eu20130103.jpg
Third last candle is LO. It has followed bearish engulfing patternt. Even if low would have been broken, I would not consider going short- green above red. Then LO candle created double bottom higher close, same time the low of the previous day was broken. Second candle with green over red. Red is sloping up, yellow is neutral. There is enough room before EMA200....Ignored
If we are going to trade towards the 200ema this will be a counter trend trade.
Theres nothing wrong with taking a CT trade but it is riskier and you need experience.
If you are still learning then trade away from the 200ema.
If you have a look at my chart you will see price below the 200ema and above the 800ema . Before todays move i expected price to go to the 800ema.
For here we might get a bounce off the 800ema and price will go back to bullish or price will break the 800ema and become bearish.
X-man the legendary conqueror of markets