EDIT: bottom wasn't in for the bounce, now in play?
45 minute gold chart break. So I buy this gold bounce, price is going to my target per normal channel mechanics, chart stops ticking for the break. When it comes back after 45 minutes the price is lower than when it closed. Then price goes beyond previous support and takes my stop. On the plus side my short is looking good and next move should be mega drop
im a trader who is trained into Fundamentals first, technicals second.
Heres why...
Traders place order accordingly to the overall perception of what the economic fundamentals are. knowingly that the fudamentals says bearish, heavier bets are filled on pullups to Short, thats why we see downwards movement in a down trend larger than upwards movement... often creating lower lows in a down trend.
Problem with fundamentals is, okay you get to know what the trend is and which direction we should be trading.... but.... trading blindly with fundamentals despite being in the right direction may cause us to enter at price with low accuracy resulting in having to hold a huge drawdown before it comes our way....
heres where technicals comes in....
Technicals should be used to identify high probability levels to enter a trade, thus increasing accuracy of the entry, reducing drawdown and maximising risk:reward ratio on a trade.
So....
heres the deal.
1. Read the macro news, see what kind of noise is out there...
2. from the noise, identify the majority of the noise, if the noise is clearer in one direction, thats the direction you should be trading.
3. However news that changes direction may come out prematurely sooo, cross check the direction of the market relative to the news.
4. If news and the market align in one direction you end up have a trend to trade with.
5. When you have a proper trend to trade with, identify best levels to make your entry. preferably if market is pulling up to retest the trendline, enter short if the trend is down.
6. Knowingly that a trend is down and that probability of LOWER lows and Lower Highs are to be created in a down trend.... define your sl and take profit.
in this case. if i see a down trend. and i entered at pull ups, i will put my first target to test Recent Low, Take half position profit there and move the remaining half position's SL to break even... thus i secure my half position profits and at max the remaining half would break even.... this strategy is best to help you secure profits yet take advantage if trend continues further.
7. as for the SL, how do we set it.... Well if in downtrend. and probability of creating lower lows and lower highs are higher in a downtrend. then place your SL at an unlikely event where a HIGHER high is created when a pullup occurs to have pulled up too far that threatens the overall down trend.
(some people would prefer to do it either as a day-day/intraday stop meaning a spike would take you out. or some other people would use a "soft"/mental stop, and set a rule like if the daily close is above previous high, then close the trade. all up to you how you want to trade."
thumbs up for that!
{quote} im a trader who is trained into Fundamentals first, technicals second. Heres why... Traders place order accordingly to the overall perception of what the economic fundamentals are. knowingly that the fudamentals says bearish, heavier bets are filled on pullups to Short, thats why we see downwards movement in a down trend larger than upwards movement... often creating lower lows in a down trend. Problem with fundamentals is, okay you get to know what the trend is and which direction we should be trading.... but.... trading blindly with fundamentals...
{quote} BULLSHIT!!!!
{quote} why thank you, your brief and unhelpful comments is really "resourceful" i and the forexfactory community thanks you for your excellent non-contribution. have a nice day.
{quote} why thank you, your brief and unhelpful comments is really "resourceful" i and the forexfactory community thanks you for your excellent non-contribution.
