I think most likely, the trailing stop scenario is best for a market that is trending on the daily charts, whereas the profit taking scenario works best with a flatter MA on the daily charts. Probably just have to be able to switch gears. I posted profit targets a while back and I believe those to be valid in a trendless market. Trailing stop is probably best right now, but profit targets will still make money in the trending market as well. If not using the trailing stop in a trending market, it may cause a trader to get anxious and jump in and force a new trade.
i was just checking the quote on yen futures. do you guys trade the emini or the larger contract? also, why is the yen quoted using JPY/USD (0.008...) instead of USD/JPY (116.3...)?
and why does the cme website say the minimum move is 0.000001=$12.50? http://www.cme.com/clearing/clr/spec/contract_specifications_cl.html?product=JY
Pound spiked up at around 4:00 AM this morning and then dropped hard. You think some traders woke up in London and deided to cover their shorts from last week and then new shorting came in quickly lol...
The futures contract is quoted in USD, so the contract is 125,000 USD. The minimum tick is 12.50 in the big contract.
Could be , but they look like they are covering their shorts quickly. Here is what I am looking for --Good short entries across the currencies. I may need to be patient. I want to trade from the side that I perceive to be the dominant trend and that's short right now. Iam already short positionally. so these would be shorter term trades.
Still short the DEC at 1.8666. Pound is taking a nice dive right now on a breakout to the downside. Dove to 1.8650 from 8666 on a 5 minute bar. Hopefully the shorts are back in and will keep running to 8100 or so. I will feel more confident if we close below yesterdays low of 8629.
It's interesting--I was just getting ready to post that the 15 minute charts (currencies other than Yen )were beginning to start the formation of a short pattern, then I lost connectivity. I come back and see that that is exactly what happened although it was a bit sooner than I had expected.