I personally didn't take the GU trade but took an EJ short. The reason I did this was on GU there was lots of support across daily, 4 hourly and hourly.
On EJ the support was really mainly on the hourly rather than crossing a number of periods, so I thought this was worth it.
I actually got stopped on EJ and I think it was a poor trade as it was put on on a friday afternoon. Generally the big traders and movers are probably winding down at this point and its really only the speculators active in the market. I think this is evidenced as it broke lower for a bit but then reversed pretty quickly. Depending on how you look at this it could be people playing the market or simply people going short and getting out.
Either way a bad trade, but I think they show how I react around support and why I chose to trade in 2 different ways.
I have attached a weekly GU to show support and a daily EJ. The point being on GU there is alot across a number of timeframes, on EJ there isn't. That was why I approached them in different ways.
On EJ the support was really mainly on the hourly rather than crossing a number of periods, so I thought this was worth it.
I actually got stopped on EJ and I think it was a poor trade as it was put on on a friday afternoon. Generally the big traders and movers are probably winding down at this point and its really only the speculators active in the market. I think this is evidenced as it broke lower for a bit but then reversed pretty quickly. Depending on how you look at this it could be people playing the market or simply people going short and getting out.
Either way a bad trade, but I think they show how I react around support and why I chose to trade in 2 different ways.
I have attached a weekly GU to show support and a daily EJ. The point being on GU there is alot across a number of timeframes, on EJ there isn't. That was why I approached them in different ways.