291113 - UTC 08:30 Reason to trade: Most of November has seen repeated testing of the year long low at around 0,8310. With the continuing bearish pressure, it is doubtful that the support will hold much longer as there still seems to be plenty of buyers out there. I will reassess early next week.
Entry: There is a strong entry indicator at the 50% fib point at 0,8281. I would place a sell stop order a few pips lower, at say: 0,8274. One should also be alert to possible rebounds at 50% fib point.
Exit: I will hope for a good R/R and aim to TP just short of the next fib point down which is also the next major S/R zone at 0,8159.
If it goes wrong, I will place the SL a few pips above the currently being tested S/R zone at 0,8317
Comments
dojitrader
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Within a trade for "trend continuation" you might want to consider and study the idea of - in this case - selling resistance
instead of selling a support area. That way you are less likely to be selling into bottoms and buying into tops.
Trend continuation from a triangle can be one of the best ways to play. However the triangle begins with the first
counter trend corrective wave to achieve the a-b-c-d-e (with 3 waves within each leg) Thus the A would actually start
where you have B, so forth,and all the letters moving ahead 1 place to put the e wave at or near the top trend line.
That's a great place to sell because if the triangle idea is correct it will usually head down rather sharply, BUT, if
the triangle idea is wrong then the risk is small just above C *your label D*. That's a long way of saying ---
Seeking out places for selling resistance Greatly increases the probability of a successful trade and lowers the risk
to your account so you may trade another day.
UKSNOWY
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Hi Dojitrader. I am relatively new to trading. I am still in my first year and learning my TA. Thank you for taking the time to comment on my idea. I appreciate it very much. You are, of course, totally right. I am selling at strong low point and it would be more intelligent to sell resistance. I have to confess, I hadn't given that much thought until you pointed it out.So, thanks again. However, I still have faith in my idea and it is, so far, going to plan. It was based on my analysis and although it may not be perfect, I am happy to have used some of my basic knowledge to select a good trade. I will take on board all the points you have shared.
UKSNOWY
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Admittedly, it didn't go completely as expected. Closed out yesterday for a modest profit. More importantly, valuable lessons learned..
Surefyre
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How different people see the same thing, eh? ;o) That lower support line is definitely common though.
instead of selling a support area. That way you are less likely to be selling into bottoms and buying into tops.
Trend continuation from a triangle can be one of the best ways to play. However the triangle begins with the first
counter trend corrective wave to achieve the a-b-c-d-e (with 3 waves within each leg) Thus the A would actually start
where you have B, so forth,and all the letters moving ahead 1 place to put the e wave at or near the top trend line.
That's a great place to sell because if the triangle idea is correct it will usually head down rather sharply, BUT, if
the triangle idea is wrong then the risk is small just above C *your label D*. That's a long way of saying ---
Seeking out places for selling resistance Greatly increases the probability of a successful trade and lowers the risk
to your account so you may trade another day.