PA has taken out the large cluster at 1.09 as well as hit hard resistance from the 61.8 fib level. VP is also at a low. Looking for a big reversal back up from here. Two potential targets up top, will update as trade progresses.
Trade active
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Comment
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PA has broken and closed below the 61.8 fib level, this could show potential for further down movement to the 1.618 before a true up reversal. SL has not yet been triggered, but it is very close. If SL is triggered, I will wait until PA drops further to test the 1.618 before entering another long position.
Trade closed: stop reached
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Comments
x381966011250105
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Great! Thanks for your postings. And I've successfully tried out a new strategy over here, using pending orders for instead of stop loss and take profit :-) I concur with your analysis. Interesting that I've already a sell limit order somewhere around 1.105 at double size my present capital. If that level is hit, it will be very nice. That strategy allows me change things dynamically, and survive the tide... Cheers and many thanks!
848evo
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NP, good luck with your trading, I'll be posting trades instead of charts once a day from now on to help illustrate how to use these levels to take real trades as I had a lot of people send me messages asking how to actually trade using these levels.
x381966011250105
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That'll be great.
I am also taking notes on my experiments with the trading platform and my real account sessions, and post some meditations on that website, hoping to help others who really try hard to learn something precious about the relativity on forex market. I'm trying to solve the following question. Let's abstract ourselves from our successful trades, when we have hit the jackpot, and when we see our equity grow, when we may set some minimum requirement for tp, and just enjoy our day watching the fx rate. The problem comes, however, when we are on the other side. We've made a trade, but we see that the fx rate goes gradually into the opposite direction. How long should we wait in that situation, should we hurry to sl, or we should think of something more flexible, we should keep that position, no matter that its negative, and open another one, an opposite one, that will compensate the momentary fluctuations we experience. If we manage to hit the right proportion between the sizes of the "mistaken trade" and the "opposite trade", we may not only manage to escape from unpleasant losses due to the unpleasant behaviour of the market, we may also not only manage to compensate to a great extent the negative result that tortures our "mistaken trade", but we may successfully wait safe and sound until the reverse, and then finish out "mistaken trade" on the right side, and finish our adventure very pleasantly.
Actually, I have the feeling that many people think that technical analysis makes their profits. Technical analysis is just analysis, it is not the real trade. Technical analysis and all other market analysis used for trading should give just general directions, meaning general ideas about possible trends, general ideas about possibility and relativity. After we've considered the analyses, however, it's time for the real trade, where ideas may bring or may lose money. Important is that we are as careful and technical with our trading sessions, as with our technical analyses. Actually, analyses are build on assumptions, while our trading is based on actions - buy and sell. While we cannot say we can be 100% precise when we make assumptions - and that's why we always speak in broad terms (also quite vague sometimes), drawing some channels, using different subjective interpretations about history-based statistical indicators, and relatively remote support and resistance lines, and etc.; our trading session is precisely conditioned in accordance to very strict trading rules, that work with very clearly defined mathematical equations...
We don't sell and buy our technical analysis. We only may use it to improve our trading session in the continuity of time, as it may give us ideas of the bigger picture, or the consecutive waves, as described by Elliot. Nevertheless, as most of us trade intra-day, we usually don't have the time and also the financial resources to wait until our expectations for the bigger picture get true, because sometimes this may happen in 1 month, even in 1-2 years. And even if we can wait until then, a momentary volatile caprice of the market, due to some market shock, financial or economic crisis, may kill our trading session just a moment before reaching our final destination.