and my first example.
g-u daily is strongly OB, which makes me want to go lower (h4) and look for a retracement. this is the daily chart:
http://img392.imageshack.us/img392/5061/gud1kc5.th.gif
and this is the h4 chart: a regular bearish divergence on macd histogram and CCI, meaning that a retrace was imminent.
http://img234.imageshack.us/img234/2333/guh4bj4.th.gif
enter short on confirmation (which for me was at 1.98), SL above last high (1.9850), TP at 1.96 area - and be careful, because this is a trade against the daily trend. i already moved SL at b/e.
R:R is about 1:4, which is quite good.
p.s. it is always a good idea to work with at least 2 timeframes, with a 1:6 ratio between them. in this case, h4/daily... but you can always use any other timeframe pairs, such as 5min/30 min/3hrs; 1 min/6min...
i'll come back later with more details about this.
g-u daily is strongly OB, which makes me want to go lower (h4) and look for a retracement. this is the daily chart:
http://img392.imageshack.us/img392/5061/gud1kc5.th.gif
and this is the h4 chart: a regular bearish divergence on macd histogram and CCI, meaning that a retrace was imminent.
http://img234.imageshack.us/img234/2333/guh4bj4.th.gif
enter short on confirmation (which for me was at 1.98), SL above last high (1.9850), TP at 1.96 area - and be careful, because this is a trade against the daily trend. i already moved SL at b/e.
R:R is about 1:4, which is quite good.
p.s. it is always a good idea to work with at least 2 timeframes, with a 1:6 ratio between them. in this case, h4/daily... but you can always use any other timeframe pairs, such as 5min/30 min/3hrs; 1 min/6min...
i'll come back later with more details about this.
Nihil Sine Deo.