Trading a reversal off the strong monthly support and resistance level of 0.77000 and the 100 day EMA to the next strong monthly support and resistance level of 0.75000. This area has shown significant consolidation over the past few months as buyers and sellers establish an equilibrium. Be wary of a potential breakout, higher high and close above the 0.77000 level to invalidate this trade setup.
Place stop a few pips above the previous high around 0.78000. Place take profit just before 0.75000.
Remember to have a strict risk management plan guys and trade safe. This is a 1:1 risk/reward trade for 1-5% of your trading account (depending on how conservative you want to be)
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Trade still valid and this week's candle has shown a clear rejection of the 0.77000 level. Continue to hold short.
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So it's taken a little longer than anticipated but this trade is back on track. Bulls have attempted to trend above .77000, to no avail. The force is strong with this one (it's plotted from the monthly chart.) Another week and this one should hit TP for 150 pips.
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Approaching profit target
Trade closed: target reached
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That's it folks, profit target reached. It took a long time, but patience is the name of the game.
@ArturasOn, Nice work! Now all we have to do is ride it south.
ArturasOn
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what is your opinion , on to use buy stop and sell stop at same volume , and if price goes to hit sl so you lock loss ,
and then open another trade away from that range , with double lot size ... it is possible to do not lose ,especialy with big acount
avidtrader89
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@ArturasOn, In my opinion, this is not dissimilar to what we call "revenge trading," where you lose a trade and enter again with even greater risk, convinced that it will go down. I'd avoid this if you can. If you've done the correct analysis, your stop take should be exactly at the point in which the trade becomes invalidated anyway, so you wouldn't WANT to double down on the same position.
ArturasOn
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but if you know for example you have fiftypercent accuracy , so five winners of ten, and no more than three loss in row...
this way u just enter your trade, originaly , and if its losing one u locking loss and then u do not play with reversing, simply you wait for another same opportunity setup , and double size ,so as and then u hit same target so its a winner.. and btw then u have two same volume trades so its free margin
ArturasOn
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OR you can open two trades buy and sell at same time put horizontal weekly suport lines and take profit at that levels and exit at that support... and put lower pending sell stop if price will continue down... and catch gains like that is this is not simpler /?
avidtrader89
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@ArturasOn, The issue with doubling your risk after each losing trade is that, you might have ten losing trades in a row, for example. When you're trading an edge, it plays out over time. The pattern of winning VS losing will vary, but you're bound to have multiple losing trades in a row at some point. So assuming you hit a losing streak, doubling risk each new trade will wipe out your account sooner than you can say "check please."