problem

if you look at daily of euro/usd, do you guys see a double top?
right now i'm short and i've been carryingthe positon for 3 days
my rsi and macd show a weak downward momentum,
but there is a fresh sell signal from parabolic sar
which should i rely on here??
so confused

The short off the double top was a good move. I made this trade also.

I have since closed my trade - I think the move down will all depend on the fibs - as I feel this is a consolidative move from the market regarding the large move up we experienced over the last few months.

The 38.2% fib of the move from 1.1646 to 1.2975 is at 1.2470. I think here as well as the 1.2520 area will act as support for the euro.

I have a signal to buy cable also on my 4hour chart - so, all in all, we could be looking at some rangey type trading, and probabaly a consolidation of the move down in the next few days.

So - in answering your question. You've made some good pips, i would consider taking profts. Regain shorts on a break of 1.2470 (tgt 1.2330) and take the long side above 1.2690 (tgt 1.2890/1.2970)

Cheers

Rusty

Hello,

If you only carry that trade for 3 days - you are not shorting at the "top range" of the double top, my advise is to take profit as you can.

Have a happy trading.

i've taken profits!!!

my mva's are telling me a near convergence between 7mva and 20mva, to me it's a buy signal so i'm buying a 100k and a stop about 50 pips below the bounce off the retracement (1.2530) ..I should get a few pips if this happens to be a range rally..and a limit 50 pips below the first (38%) retracement (1.2700). My risk/reward is 1/2.1
we'll see what happens
also i see a bearish engulfing pattern..(thanks to steve nison's book) near the (1.2530) and macd histo shows higher lows

i'm gettin to like daily charts...

Exit shorts on a break above 1.2650.

If 1.2650 doesn't hold, watch for a test of 1.2720.

My opinion only.