My guess is that the current downtrend will continue atleast untill 0.7250 level. Here I have marked down support. This support level is not definite. I wouldn`t place buy limit orders at it. It could go as far down as 0.7175.
My signals and logic says that the current downside is getting a little exhausted.
My preference would be to wait for long entry, alternatively to look for shorts at the resistance around 0.7350.
It is very important to enter at the correct level to obtain a good risk:reward ratio with a sensible stop loss.
Do not let the cost of being wrong, exceed the prize of beeing right
{quote} My guess is that the current downtrend will continue atleast untill 0.7250 level. Here I have marked down support. This support level is not definite. I wouldn`t place buy limit orders at it. It could go as far down as 0.7175. My signals and logic says that the current downside is getting a little exhausted. My preference would be to wait for long entry, alternatively to look for shorts at the resistance around 0.7350. It is very important to enter at the correct level to obtain a good risk:reward ratio with a sensible stop loss.
Ignored
Decima what would you say is a sensible stop loss ?
{quote} Decima what would you say is a sensible stop loss ?
Ignored
Hi
I would say a sensible SL is where you don`t risk no more than around 1 percent of your account. Also it is set at a price level/point where the direction of the market shows that you were wrong. Here it is okay to be stopped out.
Still, don`t go too tight with your SL. Give the price room/space to move around.
For my trading it is important to be relaxed. If I go too tight I will be more stressed about it. The fear of being right of the direction of the market and my SL beeing hit before price goes in that direction. That is why I set relatively wide SL (100 pips). The position size should be scaled after the size of our SL.
This has been a great range bound pair to trade over recent times, approaching the top of the range at the moment, will be looking to initiate short positions if a reversal bar presents itself. Will post the trade up in real time in my blog if it does reverse: http://shaunsfxtrading.blogspot.com.au/
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Joined May 2016
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Status: rollin & pipin
|379 Posts
I have this pair in mind also. Its reached a major res point, one that it hasn't crossed in well over a year, plus there's a double top on the daily. There's also a double bottom so it might breakout instead so careful. The 4hr is showing signs of a reversal though so it's looking bearish at the moment. Im thinking sl:35 & tp:70 if I jump in & maybe lock in profits with a trailing stop if it goes well.
