Personally I would say that position would be selling support and placing your stop at resistance. Its filled a previous gap and got 3 levels of support where it currently is. I’d want to see a move below support before entering a short.
Alternatively I’d look for this personally. Also gives a 4.3R to your first TP level.
I just look at the typical patterns that on a long history give a positive mathematical expectation. But I always put a stop-loss where there is a “breakage” of this pattern.
And that is exactly why I love this business. Its entirely subjective and everyone has different ideas and reads on the markets
This the reason why I prefer to discuss about systems and not about markets.
It is like staring cluods, everyone sees what he wants.
Movements are 98% random.
To understand if a method has worth you need 200 trades.
Even if you know a pattern with a positive expectation the SL placing or trade management can change completely the outcome.
Profitability depends on the complete ruleset, enter + exit.
100% agree with that
BTW I like $EEE , @Sergey5 knows what is doing .
Thanks for the kind words.
But on a “public” account “EEE” only fully automated robots trade. Manual transactions (like this one with EuroCad) I have on another account.
I absolutely know that the human psyche is weaker than the robot’s algorithms. And no matter how smart and lucky a person is, he will still make “extra” mistakes. Therefore, the “public” account is managed only by fully automatic systems. Now about them I will not tell. When the “public” account will be used for 1 year - then I will tell about them in detail.
I have a very similar scenario (which means nothing )
If anyone has decided to trade this pair and is reading this thread remember the election this weekend German General Election
If you are holding a Euro pair over the weekend make sure you know the risk associated with it.
Just an update on this original post. IMO now it is at a level where its a potential to short. Its now a ‘cheap’ trade, ie you can keep your stop pretty close as you know very quickly when you are wrong. Obviously just my opinion but I like the way it followed the pattern back up.
I’m head over heels with the idea of that happening…how much room up are you looking at mate? A retest of today’s high with some consolidation/ranging could shows signs of developing resistance. Let’s see how it plays out…
Now you have to be more careful. Today - a bet from the CB of Canada and a press conference…Tomorrow is the ECB’s bet and Draghi’s speech. The market expects that Draghi will reduce the program of “quantitative easing” by 2-3 times. From 60 to 20-30 billion a month.
@Iceberg12 @Sergey5 Just the clarify, I’m not currently short and I’m not recommending it yet, it definitely need a catalyst to confirm that it is a valid short. This is just the area where I would start looking for a short
…yeah, we can disregard this for now (Anyone thats seen the chart will know why!). Glad I waited for a catalyst. Perfect example of needing a conformation rather than just entering because it followed the first half of the pattern.
13 months of trackrecord waiting a topic about EEE
Ok, I’ll do it… Next week.