Hello Traders
A follow on from my last post, as i said before we have seen an extended accumulation period where we normally see a lot of false price action where the market maker will take orders short and long.
As you can see where we have seen a major Double Top almost looking like we was going to go short, the market maker will take loads of orders going short before going on extended run long to take he stop losses.
I have entered this trade long because on the fake move short we have now created a Double Bottom which has given me a reason to execute the trade - we have seen a lot of volume at this area and if we see a break of the 1.16 price we should see a nice push. I am still looking for a target of 1.1750
Can this go short still, yes 100% - there is no guarantees in trading - all you can do is manage your risk. you should only be risking 0.25% of your account - example; if you have a 50k account and your stop loss is 20 pips your lot size needs to be 0.62 lot size.
It doesn't seem like a big lot size but that is risk management, and managing a fund is more than just strategy with a stop loss. If you want investors to trust you then minimizing draw down is key!
Safe trading guys.
A follow on from my last post, as i said before we have seen an extended accumulation period where we normally see a lot of false price action where the market maker will take orders short and long.
As you can see where we have seen a major Double Top almost looking like we was going to go short, the market maker will take loads of orders going short before going on extended run long to take he stop losses.
I have entered this trade long because on the fake move short we have now created a Double Bottom which has given me a reason to execute the trade - we have seen a lot of volume at this area and if we see a break of the 1.16 price we should see a nice push. I am still looking for a target of 1.1750
Can this go short still, yes 100% - there is no guarantees in trading - all you can do is manage your risk. you should only be risking 0.25% of your account - example; if you have a 50k account and your stop loss is 20 pips your lot size needs to be 0.62 lot size.
It doesn't seem like a big lot size but that is risk management, and managing a fund is more than just strategy with a stop loss. If you want investors to trust you then minimizing draw down is key!
Safe trading guys.
Comment:
Pulled the trade out as we went for a fake move high, now we look like we are going for the sustained run short - ill sit this one out and wait for a better opportunity
Comment:
I reentered at the break of the 1,16 price