1. If you think like that, you'll never get anywhere. 2. Disagree. Rules are (have to be) unmistakeable and iron-clad. "Common sense" must be one of the funniest oxymora on planet earth. Double the impact of this truism when applied to markets. The markets can remain irrational longer than you can remain solvent. 3. Limit stops? Never use limit stops, that's a great way to die! If you want to exit, have a stop-mkt order in. If you want to enter, use a buy lmt or sell lmt order. I'm not saying you should try to buy the bid or sell the offer. All I'm saying is you should use a limit order that reflects the maximum entry slippage you're willing to give in a trade. It can be 5 or 10 pips if you like, or 20. Depends on you. But I 100% think you should have a maximum slippage you're willing to give away, or you're simply a madman. Perhaps you'll have 150 pips slippage one day, and then the market goes moon against you, then you'll see. News can be like that. Later this Monday, I made 85 pips on one EUR play, it was all over in about 10 seconds. My sincerest thank-you goes to all the clowns who entered that news play at market, further propelling us into profit. It's Murphy's law: "If something bad can happen, it will happen." End of debate. 4. If you keep trading this well, you might be able to get a Bloomy sooner than you think. 5. I disagree.
GBP strong? I don't know if you've studied my GBP chart with the down-channel and the upper eigth line. If you study the eventual point of penetration of that line as drawn, you will know where I'm short the GBP... Seriously though; How can you say something looks strong if it's all relative? I mean, the 2:30 bar was long, so there was a powerful volume gap to be filled for starters. That gap is now filled, is it still viable to go long? Since going long here seems like a very low R:R play, logically, going short seems like a higher R:R play. Saying what looks strong or weak doesn't matter in trading. That's opinion. Leave opinion to the annoying TV analysts, brokers, newsletters, snakeoil vendors etc etc. In trading, this has no relevance. The only thing that matters is risk and reward.
Scientist, Thank you for your comments. We all learn by sharing ideas. Also Einstein did (with Bohr). PS. Still long Euro?
If GBP goes north, while EUR and CHF goes south or sideways, I suppose GBP looks strong. I can see no reason for shorting GBP at this stage.
Being Danish, you just had to say that, didn't you? Man, it's been over 80 years now since that dude got his nobel prize. How time flies! As for the EUR ... Dude, I went short, not long! And yes, I'm still short the EUR, and now short the GBP also. See if things continue or break out. If break out - nice, too. Gives us a play for the long side!
Baruch, I don't mean to bug you on this indicator question, but I'm just trying to understand your method. You said you go short if RSI is less than 45. But today you say you shorted GBP at 1.7995 because the RSI filter was over 60. Can you explain if it's short under 45 or over 55? Cheers, tykoon
News: I love to follow the news. I use streaming news from Market News International (mostly Forex) and AFX. I also use the websites of Bloomberg (and sometimes I hear Bloomberg radio on the net) and CBS Marketwatch very much.