beginner here... thanks for this, are you trading when the markets are within a range? theres a similar range on the daily chart on GBPUSD as well that looks similar. do we just wait until the range is broken? thanks
@npreston99, Hi there! So this is dependent on the type of trader you are, if you are a trend follower (a trader who holds a position for a couple of days) you would be more inclined not to take the trade because of the uncertainty of price movement, as you said, if you wait for the range to be broken now all of a sudden there is certainty in the market, this is where you usually see movement in price. However if you are a scalper a range is a dream. So define your trading style!
@Atkinson_trading, im into the quick in and out sort of trade and i have the time to keen an eye on the charts, although the kind of range we see here is on the daily charts meaning it would take a few days for the range to continue no? the EURUSD daily chart is at the bottom on the range at the moment so i would think to go long and wait for it to climb back up to he top of the range over the next few days... is that a silly idea?
@npreston99, Okay if your looking for small hold times you need to look at smaller timeframes and just take in to account of the these daily price levels. In my opinion, you need to look for times of volatility within the market, so for GBPUSD for example pay attention to 12:45- 13:45 and 14:15 - 15:15 (BST). But I can't tell you how to trade, you need to develop your own philosophy of the markets, if I say your idea is silly and you take that mentally as your doing something wrong, but in reality there is no silly ideas, as traders we will always have conflicting views on the market... that's the fun of it!
@Atkinson_trading, ahh ok I understand. thanks a lot for your help. im looking at the 15m chart at the moment for GBPUSD and its dropped a lot and will hopefully bounce up off the bottom of the range for a quick profit. we'll see though