Cable rebounds through a new trendline.... Jim Rogers who predicted "The pound will collapse within weeks" will have some sleepless nights this weekend.... We need more of these billionaires to share his dough around...
I actually want to highlight and emphasize to treat such expert oinion in the popular media or cnbc or bloomberg tv as entertainment, no more no less. As Dr Alexander Elder says, "The popular media only reports on stuff that they more or less 100% certain to be true" In this case the huge move in cable downwards. They are news organisations and are in the business of being 'right'. Hence they always report on a commodity or instrument at advanced stages or exhaustion pahse of the move.
For the entry, do we have to wait until it retraces?
According to your experience, what do you think of taking position when the trendline is broken? (will it be too risky?)
Regards,
bun888
In my opinion, the entry depends on your individual trade plan, which reflects your personality. If you decide to enter on break of the TL without a 'close' of the 60 min candle, just bear in mind it can reverse before following through.
I like to let the candle close then enter on retracement. In the 60m timeframe, we are expecting a larger 'trend' to develop, so it is ok to enter late i guess.
In my opinion, the entry depends on your individual trade plan, which reflects your personality. If you decide to enter on break of the TL without a 'close' of the 60 min candle, just bear in mind it can reverse before following through.
I like to let the candle close then enter on retracement. In the 60m timeframe, we are expecting a larger 'trend' to develop, so it is ok to enter late i guess.
I understand.
Yes, I figured that a decision should be made after the candle close.
In your experience, is it possible for a trendline to be broken and the next candle came back to the previously broken trendline?
I understand.
Yes, I figured that a decision should be made after the candle close.
In your experience, is it possible for a trendline to be broken and the next candle came back to the previously broken trendline?
Yes, that happens. There are situations where the candle pokes through the TL and the very same candle closes below. That is also a signal to go the other way...
Remember that markets don't go straight up or down. Inevitably after the breakout and close above/below a TL there is some sort of retracement.
Yes, that happens. There are situations where the candle pokes through the TL and the very same candle closes below. That is also a signal to go the other way...
Remember that markets don't go straight up or down. Inevitably after the breakout and close above/below a TL there is some sort of retracement.
I see. Where would you normally put the stop loss? Is it several (could be 20, 30, 50,etc) pips below the bottom or top candle of the retracement?
