DislikedThe situation with the GBP/USD as well as the AUD/USD and NZD/USD is where you might want to use some discretion as far as trend determination goes instead of just the 20 and 50 EMAs.
I'm experimenting using the 5 Smooth Moving Average High/Low price channel in situations like this. I entered the AUD/USD and NZD/USD because the 20 and 50 EMAs were strongly converging and price had closed below the 5 Smooth Low on the Daily and was below the 5 Smooth Low on the Weekly as well.Ignored
AUD/USD . . . DISCRETION YES!
You will probably make some money on this trade (for a variety of TREND and recent eco-news reasons.) And I can see how you might become very eager to enter a SHORT here. However, I would not have taken the trade because of the following: We are looking for, and supposedly testing for SIMPLE setups . . . so, for example: Do you see three consecutive daily down bars?
Just curious what our long-term objective is? I know what mine is!
Regards, K
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