Hello Friends...its been awhile since I've been able to post and I truly appreciate everyone who has stepped up to fill in the gap. I try to keep in touch with my cell. Today's price reaction has proved once again that sitting on your hands is sometimes the best thing you can do when trading. Let me show you EUR/USD - short:
You may recall that I entered this short 4 weeks ago, and have been holding it ever since. It looks like it is just now starting to (FINALLY) pay off. This trade tested my patience. But using multiple time frames helped. Seeing that buying had completely exhausted on the weekly chart allowed me to hold this trade through an almost 100% retrace to retest my entry level. Now I have locked in a modest 100 pips on the aggregate position which is currently positive about 240 pips.
Lessons here are these:
You may recall that I entered this short 4 weeks ago, and have been holding it ever since. It looks like it is just now starting to (FINALLY) pay off. This trade tested my patience. But using multiple time frames helped. Seeing that buying had completely exhausted on the weekly chart allowed me to hold this trade through an almost 100% retrace to retest my entry level. Now I have locked in a modest 100 pips on the aggregate position which is currently positive about 240 pips.
Lessons here are these:
- Multiple time frames helps with hold and continuation as well as direction
- Note the buying exhaustion on the weekly chart followed by a huge surge in selling
- Later note the anemic buying on the retest of the highs (weekly chart)
- Finally the on the daily chart any buying that occurs is weak with strong selling follow though.
We'll have to see if sellers can push price through the most recent daily low.
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