DislikedIs this a good trend confirmation on USDJPY? H1 shows trend up, nice EMA spread, RSI 5 shows up(above 50) {image} M30 shows up, nice EMA spread, RSI 5 up, but i see lower highs being formed( am I wrong)? {image} M15 shows up, EMA spread not that good, now higher highs are being formed wich is good but i see the price in a range of 33 pips( am i wrong)? {image} M5 shows up, EMA start to spread nice again, RSI 5 up, but previous 5M high yellow elipse still not broken wich means we are still in that 33 pip range (am i wrong)? {image} Should i wait...Ignored
Firstable I am sorry to answer you so too much late but I was focused on my trading and I dont want to be "disturb" reading my own thread or surfing on the Internet. And it is a "gold advice" : when you trade be focused on it and dont do anything else ! Many "traders" look at facebook, FF, or something else while they trade and they ask me "why do we fail ???". That's a job for real : treat it as a business or you are dead.
Ok. About your analyze : You are right the trend is clearly up ! But the fact that the trend is clearly up is not enough to jump in a trade. Also be very careful with RSI5 : it gives you momentum and not the trend ! This is very important my friend. trend is given by PA and EMAs, and confirmed by the RSI21. So of course we are in an uptrend but if you look at your 1h chart you can see that you are near a resistance level. So now you know two very important things : you are in a strong up trend so you dont want to short this market, and you are near a resistance so you have 2 ways of trading :
- A fisrst choice can be to wait for a pullback on 5mn chart to enter long with a tight stop because you would take your profit near the resistance level. You had three signals (1 wrong on the first touch of the high and 2 right after).
- A second choice is to wait for a breakout of the resistance and then wait for a pullback on a 5min chart or even a 1min chart : this way is generally safer because you have the big money in the game. Nevertheless, you have to be careful about false B/O that's the inconvenient but you have to accept some losses. The advantage is that you can be at the begining of a strong move with a tight SL so that you can have a very high R/R. And on the long term this is very important to be a successful trader !!!!