Thanks for the clarification. Will post some charts next week.
Have a great weekend
Swissie into uncharted area
A gamble is not a trade....
This is to follow up on the story of the trendlines in USDCAD.
It's a two part story.
I wrote the first part this morning, before I left home, but forgot to post it here.
The second part was written just now, due to changing market conditions
Right now, during London session, there is another attempt to get back above 0.95 level.
As you can see, price has breached the magenta trendline and is trading above 0.95.
Now the question is, is this a succesful breakout above the trendline ?
The answer is, I do not know for sure, but I think this is not a valid breakout.
Why not ?
The price action that follows the "breakout" is not convincing.
Price has also not traded above this week's high.
Another thing to consider is that the trendline is drawn poorly.
Maybe it should be drawn with a different angle, using different points etc...
(dotted yellow line for example)
Although the signals are mixed, I enter a short trade right now with a tight stop loss.
Don't have the time to monitor the trade, it's time to play outside with my kids and go the Zoo.
Coming back home at the end of the day, I see that price has gone up, and the trade was stopped out with a loss.
(see second chart)
The lesson to be learned here is that trendlines, no matter how you draw them, do serve a purpose.
Another lesson is that this was a really bad trade for several reasons.
The signals were mixed and point to a further advance (divergence in RSI).
There was also no real price action to justify the short trade.
However, bearish as I was on the USDollar, I was too eager to enter a short trade.
So actually this was not a trade, but a gamble.
It was a gamble for a declining USDollar.
And I lost this gamble.
Hope that helps and thanks for reading
The break was not according to plan, so part of my long position got stopped out at 1.0950.
Long term I am still bullish on this one, so I decided to not close all the longs.
In order to protect the remaining long AUDUSD, I shorted NZDUSD, so that gives me a long AUDNZD.
This turned out to be a good trade and profitable switch during the volatile overnight and daylight sessions.
I got stopped out of my short NZDUSD at 0.8650 with a profit.
Even better, I still have my long AUDUSD.
Meanwhile the price is back to the trendline again, struggling for the 1.10 level again.
And we are again on our way into uncharted areas.
I really like this
And some settings, it just plots up to 5 vertical lines at the time of your choice, quite easy, text is as per your choice also, very handy
lawgirl, what's with your eurusd trade? still on?
EURGBP Week's Summary
July 26, 2011
Break to the upside for about 30 pips before turning and heading down for the remainder of the week.
July 27, and July 28
Textbook almost identical moves down around 50 pips each day.
July 29, 2011
Price taking a break. Consolidation to decide where to go next. Plenty of room still to the downside, but may head back up.
Candles, as do the RSIs, show total indecision.
Before you start arguing on the merits/flaws of each perspective give it an honest thought.
If the majority is consistently right as you argue, then why is it that every broker data shows that the majority of their clients are unprofitable?
It was already mentioned that a H&S pattern is forming on the daily chart.
We are near the neckline.
Any ideas for next week ?
AUDNZD is still on my watchlist.
Long term, price is approaching interesting levels (see weekly chart).
Past two weeks (see H4 chart) showing several H43T setups, and BO trades.
I only took one trade, and I was lucky to get out with positive pips on a long trade in a downtrend.
Now price returns to the bottom of the trading range and taps the H4 line again.
Opportunities for a downside BO and upside H43T next week.
Ideas and comments are very much appreciated
That's the following pairs:
EURCHF, GBPCHF, USDJPY, AUDUSD, USDCHF, NZDUSD, EURAUD, and AUDCAD, with USDCAD and GBPJPY almost at all time lows (around 500 and 800 pips away, still room down).
That leaves plenty of pairs to trade, including EURGBP which is one of my favorite pairs.
Gold opened with about 130 pips gap. It may close de gap
Starting to break...
Pipfest... Lots of nice BOs this morning. here is one.
Breaking here too.
Another one. Got a few pips on this one too... Same on Cable and GBPCAD... Too many to post..
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