Time at Mode Methodology:
Sell breaking under today's range in tomorrow's trading. Target the 7-day mode. Risk 3 x's the ATR(11).
These trades are difficult to take due to the "fade the trend" mentality needed to enter the market. By selling short term weakness under the previous day's low, at least you aren't guessing a price out of thin-air like you'd have to in order to have sold at the "target reached" level. However, you can see in hindsight that was a low-risk level to short. The markets are cruel this way, what you think is low risk can often be high risk and what you think is high-risk can often be low risk. Randomness will often convince you otherwise at times.
Either way, this is an aggressive trade based on a market that is exhausted in price only.
Tim
3/16/2015 3:47PM EST 0.6972 last
PS - Thanks to @IvanLabrie for pointing out this chart in the first place. I suggest you follow his charts to follow the excellent work he is doing in currency analysis.
Sell breaking under today's range in tomorrow's trading. Target the 7-day mode. Risk 3 x's the ATR(11).
These trades are difficult to take due to the "fade the trend" mentality needed to enter the market. By selling short term weakness under the previous day's low, at least you aren't guessing a price out of thin-air like you'd have to in order to have sold at the "target reached" level. However, you can see in hindsight that was a low-risk level to short. The markets are cruel this way, what you think is low risk can often be high risk and what you think is high-risk can often be low risk. Randomness will often convince you otherwise at times.
Either way, this is an aggressive trade based on a market that is exhausted in price only.
Tim
3/16/2015 3:47PM EST 0.6972 last
PS - Thanks to @IvanLabrie for pointing out this chart in the first place. I suggest you follow his charts to follow the excellent work he is doing in currency analysis.
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