Ha, well, for me to be a proponent of technical analysis trading is unusual, but I did notice something a few minutes ago that got my brain going.
Looking at the hourly EURUSD charts over the past few weeks, it has been remarkable how well the channels have formed. I want to caveat this post before I go into any detail about my ideas:
1) Channel markets can disappear in a blink, and you need to know it
2) Any sort of worldwide catastrophic panic like Lehman brothers can completely destroy this type of opportunity
When there are channels, it seems you can put a stop loss within 2 or three pips of the top or the bottom. If you are wrong, you are out 2 or three pips. Sometimes it will go your way only 1/4 or 1/2, and retrace back to a newer high or low (and you'd be stopped)
But sometimes, it will continue all the way to the other side of the channel. I am thinking that risking 2 or 3 pips to gain 50 is not a bad situation. Yes, I think it is gambling, and yes it is simply old fashioned charting.
But you have to keep an open mind, right?
Looking at the hourly EURUSD charts over the past few weeks, it has been remarkable how well the channels have formed. I want to caveat this post before I go into any detail about my ideas:
1) Channel markets can disappear in a blink, and you need to know it
2) Any sort of worldwide catastrophic panic like Lehman brothers can completely destroy this type of opportunity
When there are channels, it seems you can put a stop loss within 2 or three pips of the top or the bottom. If you are wrong, you are out 2 or three pips. Sometimes it will go your way only 1/4 or 1/2, and retrace back to a newer high or low (and you'd be stopped)
But sometimes, it will continue all the way to the other side of the channel. I am thinking that risking 2 or 3 pips to gain 50 is not a bad situation. Yes, I think it is gambling, and yes it is simply old fashioned charting.
But you have to keep an open mind, right?
, but are good for support resistance (sl, tp ) and changes in trend direction
