Actually, both. If I am not already bracketing according to prior critical price levels or channels, then it will really depend on the situation. Will I anticipate or wait for confirmation? Well, to sum it up as simple as possible, it generally depends on whether the market is ranging or trending. If it's ranging, I may anticipate the reversal (call the top or bottom), and if it's trending, I will more likely wait for a confirmation of a reversal. This is just logical when you observe the markets a bit and realize that you can really get burnt trying to pick tops/bottoms in trends, versus have great R:R's during ranging times. Ranging times = Carefully anticipate reversals Trending times = Wait for decent confirmation As a quintessence though, the most important thing to watch in each case is volume behaviour on the chart, and tape. Volume speaks volumes...
Great job on friday, I can really learn a lot reading your posts. I think that I will review as much as I can of your 1800+ posts. It would be great if you could have time and fun in making your own journal with charts posted like yesterday.
Rather then start a new thread I thot I wud post this article that appeared this morning in a Daily Hedge Fund Newsletter .......... think this will b filtering thru to all platforms very soon: FXall, Charles River to Offer Automated Currency Trading and Settlement By Paul Barr, Managing Editor Friday, March 26, 2004 1:20:02 PM ET NEW YORK (HedgeWorld.com)âTwo investment technology firms teamed together with a plan to offer completely automated foreign exchange trading. FXall and Charles River Development, Burlington, Mass., will combine their respective areas of expertise to create a system that allows straight-through processing of foreign exchange trading. The alliance will combine FXallâs currency trading capabilities with Charles Riverâs order management and portfolio management systems.
Hey Sci, Sorry for slow reply. I've been on vacation skiing the past few days. I would have covered up near the channel on that trade. R/R would seem to get ugly after that point. Jay
Scientist, Phenominal performance. Thanks for the charts and sharing the day. Are most of your trades now "longer term" ? Cheers Kwai
I didn't go long the pound for several reasons. I tried to just sum up some and put them on a chart... as attached. Also, as you know, I am short the EUR. There are a lot of reasons involved, including of course correlation. But chances are equal for both of us to be wrong or right, and as long as our R:R's are great, who cares anyway. So don't give anything on my analysis, and make sure you ride your trade for all it's worth... S
I'm outta here @130, so it's +0 and +10. Scratch trade basically after being way in the green at some point. Don't like the development of things, so I'll just stand aside until something better comes...