FX TRADING METHOD
i n t ra - da y charts - I will be watching for an opportunity to join the bulls only when I see signals that the trend change on the secondary and primary charts is probable.
Figure 3
to view the three charts I have assessed the trend situation and have decided that a long trade is favored, for the following reasons:
Price has just made a very large move to the down side.
Although the trend is still down on both my primary and secondary intra-day charts, a short trade at this point would not be desirable because we see a possible change in trend in the near term as the most probable price action.
ENTERING A TRADE
Knowing which side of the “Tug of War” I want to join – I now only have to decide “when” to join. With the trend still strongly downward - in both the primary and secondary
Of the two decisions I have to make to enter a trade, “when” is by far the hardest to make with c o n fidenc e.
Getting the “when” right is where a good trading system becomes a must. The “when” is where we separate the aggressive and cons er vat ive traders - as well as the short term and longer term traders.
I want to go
long this
market, but, at the current time of day, it is too late for me to enter a trade without all
74 FX TRADER MAGAZINE October - December 2013 the overnight implications and
risks - which I prefer to avoid. I will have to wait for tomorrow morning to watch for a long trading entry opportunity in this market.
What we will be looking for starting at 6:30 tomorrow morning is confirmation of the expected move to the upside – and the relative strength of that move.
My trading system tells me that if price can break above the two primary SRVs at 1.51437 and 1.51491 there is a very large area with scant resistance until price reaches the 1.52200 area. Such a move would result in an excellent long trade. But the move has to happen within the time frame of my trading day – usually between 6:30 to 14:00 most days.
Figure 4
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