Here is a good example of knowing when to get in and when to stay out and let the market speak for itself. In this example of the GBPUSD pair, notice how the market is moving lower, potentially moving lower to cross what could be a potential neckline for a double top. Moreover, the argument for taking this trade short would be that the market is hitting the trend line that is acting as resistance, exponential moving averages are moving down acting as resistance as well, and the RSI is moving down. Also, notice how the Red candle engulfs the body of the previous candle. All of these factors may convince one to go short. Quite frankly, i rather not take this trade and wait for the market to give me further confirmation that it will move lower, and with aggression. At this point, one might ask how and why! Here is the reason why!
Personally, this trade is probably going to suck, it probably will not even close below the neckline, but I MAY BE WRONG and it may in fact close below the line. However, the RSI does not display enough evidence that this market may in fact move lower, and the RSI may potentially bounce of the potential trend line and the market may not in fact move lower as a result of the momentum that is setting up in the RSI, but i may be wrong about that too. More importantly, notice how the red candle underneath the red arrow did not close all the way down to the open of the long green candle ( if you know your candle patterns, you know what kind of potential candle pattern would have played out). Personally, the Red Candle is weak, but i could wrong about that too, who knows. Be that as it may, all i can say is that it is possible for this market to close below the neckline and trade bearish, but only for a possible short amount of time and may not possibly hit the desired target, and the reason being for that argument is because i found indecision in my own argument. The lesson here is that if one is not fully convinced by ones own argument to get involved in this market, it may fact be possible that the market is indecisive as well. however, one can still play the example being shown, but only for a quick scalp! Fair enough?
Hope this helps you out traders!
Personally, this trade is probably going to suck, it probably will not even close below the neckline, but I MAY BE WRONG and it may in fact close below the line. However, the RSI does not display enough evidence that this market may in fact move lower, and the RSI may potentially bounce of the potential trend line and the market may not in fact move lower as a result of the momentum that is setting up in the RSI, but i may be wrong about that too. More importantly, notice how the red candle underneath the red arrow did not close all the way down to the open of the long green candle ( if you know your candle patterns, you know what kind of potential candle pattern would have played out). Personally, the Red Candle is weak, but i could wrong about that too, who knows. Be that as it may, all i can say is that it is possible for this market to close below the neckline and trade bearish, but only for a possible short amount of time and may not possibly hit the desired target, and the reason being for that argument is because i found indecision in my own argument. The lesson here is that if one is not fully convinced by ones own argument to get involved in this market, it may fact be possible that the market is indecisive as well. however, one can still play the example being shown, but only for a quick scalp! Fair enough?
Hope this helps you out traders!