Realist, Good luck with your trade. I think we need to move down but who knows. If we can build value below 1.4049 area, then I think we may ultimately move down to the 1.3563 area. There is a lot of wood to chop on the way though. On the other side of the coin is the longer term distribution which shows an ultimate target of around 1.55 on spot. If we move above 1.43 and build value, then the range may extend upwards. On a macro level, I have the key level around 1.4167 going into next week. We need to hold below here to get things moving down.
Simple is good. What are your entry and exit criteria for this methodology? I am assuming you have a generous risk limit to trade this way.
Here's a trade I am watching for today's NA session. Price is currently at 1.4090. If price moves down to 1.4086, then set longs and target 1.4180. You can also use 4136 as a target to take off 1/2 or 2/3.
I always have stops in place. Normally I place them at or near the swing high/low in case the trend moves against me. I was stopped twice in the last 9 months. One of the stops actually allowed me to renter on the long side with about 60 extra pips on the re-entry...
Yesterdays strength in the $XEU appears to be reversing today. The charts are printing the usual secondary high test and perhaps the DX will begin to continue moving higher from here in the near term. Sold more ECZ7 today as a result of this development...
We did trade up to the 4245/50 area. I am out of my longs. This area up to 4285 is much more likely to give us the move down. Watch for the daily high to be tested in tonights Asian session, likely a head fake up then down the rest of the week. But who knows. Trade em like you see em. I am looking to set up short in the current value area