There are trading opportunities that lead you against the trend. They are dangerous, rare, and sometimes disappointing. But they exist. And if you are confident enough, experiences enough, and sure in your analysis, they are opportunities like the others. So let's go the example of one of the so called "against the trend" opportunities.
On November 01 I published my weekly Forex Bulletin, in which I suggested that we're gonna see another intraday rally in EURUSD. Here are the exact chart and the commentary.
http://marketsinside.com/images/stor..._011110_1h.jpg
"EURUSD - Correcting, then higher.
We expect to see another intraday low for wave e from the triangle, and after that is very likely to see another rally with appropriate target at 1.4208. Critical level at 1.3692."
And the market indeed rallied. Actually it passed just a little bit my target, but in general the forecast came true. What's more interesting what should you do, when your analysis tells you to expect a top, and that top actually occurs. After the market reached my target, I was waiting for some signs of at least an intraday reversal. The the market was grateful. I saw a downside movement, which had five waves in it, and then a sideways correction. It was enough for me. I waited til the market broke its low, and I opened my short position, with a stop loss level at the previous top. All I had to do was to wait for wave iii to develop. Having in mind the low time frame, the whole position was supposed to happen in a day.
http://marketsinside.com/images/stor..._1_article.jpg
After I saw the sharp downside rally that I was waiting for, some corrective hesitation for wave iv, and a new low for wave v, I decided that it's enough for me. I took my near 150 pips in a few hours. Yes, the market continued to fall, but at that time, I wasn't completely confident that I should keep my position. That's what I do. When I am not totally sure in my position, I close and stop. Confidence is the most needed sense for successful trading.
On November 01 I published my weekly Forex Bulletin, in which I suggested that we're gonna see another intraday rally in EURUSD. Here are the exact chart and the commentary.
http://marketsinside.com/images/stor..._011110_1h.jpg
"EURUSD - Correcting, then higher.
We expect to see another intraday low for wave e from the triangle, and after that is very likely to see another rally with appropriate target at 1.4208. Critical level at 1.3692."
And the market indeed rallied. Actually it passed just a little bit my target, but in general the forecast came true. What's more interesting what should you do, when your analysis tells you to expect a top, and that top actually occurs. After the market reached my target, I was waiting for some signs of at least an intraday reversal. The the market was grateful. I saw a downside movement, which had five waves in it, and then a sideways correction. It was enough for me. I waited til the market broke its low, and I opened my short position, with a stop loss level at the previous top. All I had to do was to wait for wave iii to develop. Having in mind the low time frame, the whole position was supposed to happen in a day.
http://marketsinside.com/images/stor..._1_article.jpg
After I saw the sharp downside rally that I was waiting for, some corrective hesitation for wave iv, and a new low for wave v, I decided that it's enough for me. I took my near 150 pips in a few hours. Yes, the market continued to fall, but at that time, I wasn't completely confident that I should keep my position. That's what I do. When I am not totally sure in my position, I close and stop. Confidence is the most needed sense for successful trading.