The gbpusd came up to its 2013 open and tested it as resistance. Price has not closed for the day over this level for 2013 to date. My plan is to trade this off the daily, with a stop right above the 2012 highs. If price closes above this level on a daily close I will not enter this trade.
Comments
alex.a
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So many economists are praising GBP's Kani(spell?) new ways of stimulating. At this point, the Wednesday will be the key point, I presume. Thursday interest rate will be the same. Friday has no fundamental data. Good luck -
fxtrader66
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This trade depends all on gbp strength, ie the gbp has a strong close above the yearly open, its a no go, weaknes below where the gbp can not close above it will take the trade.
alex.a
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Sorry to write fundamental here... IMF raises UK 2013 growth forecast to 1.4% up from July's estimate of 0.9%.
alex.a
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Man - That's very difficult to do it, what if you put the position but it goes off, then Stop loss. the next day it comes back and put the position but also it goes off another stop loss. and so on - But good luck -
fxtrader66
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If you are worried about entering a trade only to have price come back to stop you out is something we all have to deal with. One way to manage a trade is to move your stop to break even once 30 - 40 pips in the money and take 1/2 off so you will at least make some lunch money. If price comes back and you get stopped out its at break even.. no worries, since once at break even its a free trade.
alex.a
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Let us know when you enter. Perhaps, I might follow you with demo-account to experience exactly what the yearly-open means. What the words say and actually in the account are two different things, perhaps -
alex.a
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So, it means you will place sell position if the price goes above 1.62617 any day with ST=1.62617. However any day if the price goes above 1.63720, then you will not enter. So, you have to watch the price goes above 1.62617 and make sure it won't go over-above 1.63720. Then you enter. Do I understand you correctly?
fxtrader66
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I am looking at selling the gbp up at its yearly open. Opening ranges can act as S&R, so if price trades back up there and does not have a daily close above its yearly open I would enter a trade. The stop would be over a 100 pips, but would use a smaller position size so if the trade went against me it would not hurt my account. I think the risk reward is good on this trade.
alex.a
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Whoa ~ You are the first person to do really yearly open. I cheer for you, definitely - although I don't know "exactly" what yearly-open means. Is it the position-opens once a year? (no, right?)
fxtrader66
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Its the opening price for the year 2013. Just like there are monthly, weekly and daily open, If you notice price opened up at 1.92617 spiked up then dropped and never looked back, I believe this level will act as resistance agian.