FOREX – EURUSD short Part 2

OK, but what of the “larger degree” trend I hear you all ask.

Well, if you look at the 4hr Chart you can see how the 1Hr DP sell was actually unfolding “at the same time” as a TS3 sell on the 4hr chart. So this gave added weight that a high was unfolding and as such it was Ok to consider the 1hr short.....

Thanks

Steve

FOREX – EURUSD short

Hi Everybody

Here is a great “manual” DP sell on a 1hr (60min) EURUSD chart. As you can see the short was entered as the markets reversed off the DP level with a red (sell) reversal bar. The target was the “opposing” DP level.

The EUR has just reached this level where this short trade would have been stopped out for a nice +4.3R Profit

BUT, what of the STF strength band I hear you all ask ? Exactly, the above sentence was actually a little “test” to see how many of you were paying attention. Exactly, as the STF strength band has been exceeded, the stop is now trailed just above the ATRStop.

Thanks

Steve

The Cyclical Nature of Trading...

Hi Everybody,

Well last week was a perfect example of the cyclical nature of trading, where we had a few hard days at the end of the prior week, then the first part of last week was brilliant with 3/4 days of good (and large) profits that was then followed by a much harder day on Friday. This is how the markets work in real-life, so should any of you been surprised that Friday was a hard day ? No, because it came after a few good, and very profitable days.

If you look at the 3min Charts on Friday you can see they were horrible, with most of the day being range bound in narrow and choppy swings. These days are very very hard to trade. But this is where armatures complain and say that the markets are impossible But then they do not understand that this comes on the back of a few brilliant days. This is what trading is all about, so as you all know about the cyclical nature of trading now, you should have have been anticipating a harder day so it should have some as no surprise.....

On days like this it is best to either look to bank profits quickly or at the very lease get your protective stop to break-even quicker. Either way, they are hard days to trade.

I would not be at all surprised to see a few more hard days, before the cycle gets back into the good and profitable part, maybe later this week.

Thanks, Steve