I agree with the short here is a well. As I pointed on in the chart, the important thing about this trade is trade management, because a trader would have instantly exited after seeing the big buyer bull. But, I always expect retrace after entry and I use the retrace to reduce my risk. In this case, the short is good, but trade management is important to hold for bigger profits.
In one of my previous posts I mentioned the most likely resolution of the BO that it would probably be north. As bears channels are functionally bull flags. Thus it ended up. I have included a snippet of that post for reference. So, if that happens (i.e. a successful BO on top side that does not fail with price going back into the range) then I want to look for a measured move up. Actually, it can be more than one measured move. So, if I load up with several lots in my entry or on PB’s or limit order entries on low off bars around my first entry. I can then scale out at different measured moves . Since no one can be sure just how far the market will go up or how many MM’s it will reach until it stops this gives me at least some profit. So, locking a profit is one way to not give back a gain. I will show three measured moves after the BO. These are logical areas to extrapolate possible moves and profit taking areas. The first MM is from the BO point to entry then extrapolated that same distance up above the BO point. The second MM is from the last swing low in the channel to BO point then extrapolated up from there. The third logical MM is from the bottom of the channel (also where the move up actually began) to the entry then again extrapolate up the same distance. These measured moves are PT objectives. Maybe unload part of the position on the smaller measured move where a little profit taking takes place and hold the rest for the bigger measured moves. So what will make me decide to hold for a second or third MM or dump it all on the first measured move? Well that depends on the strength of that first measured move target. Also to hang onto part of the position I like see bullish bars....gaps...micro channels...not many overlapping bars...etc. Things that would indicate buying pressure to me. In this particular case I would have probably taken 1/3 off at 1st MM, 1/3 or the rest off at the second MM move. I might would have held a third for the last measured move. This is basically scaling out on MM’s as opposed to adding to my position on MM’s up. Locking in some profit, as things move in my favor. Of course, some overlapping bars and a little sideways moves will take place at each measured move target. This is caused by long traders taking some profit off the table and also by bears trying to make the move fail. I might even hold a third of my position past the 3rd measured move level? Why? Because that last push up towards the top of the 3rd measured move was on 4 bull bars in sequence with no exhaustion bar present. This implies the move still has some strength in it.
forex is easy just follow the trend …..do not scalp....do not overthink the market. do not use forex to pass time....and do not trade because money is available..do not overtrade... like i have been doing the fastest way to ruin in forex is over trading. trade to make money
i have made some very high percentage moves when market is in a wide range...but never knew how to trade trends .....because you cannot trade both sides in a trend....something i like doing because of the huge money that can be made. now i just trade one side and have come to terms with the fact that you have to look some where else....to pass time.