$GBPUSD comes down as bulls get caught, but bounces off of value level
Written November 5, 2009 at 9:56 AM EST by Greg Michalowski
The GBPUSD has come off as the 1.6635 level target was reached and held. The price moved below the support at the 1.6596 level. From there, the long liquidation ensued. The market simply did not do what it was supposed to do (CLICK ON PRIOR POST).
The price went down to the support at the 100 and 200 bar MA on the 5 minute chart at the 1.6533 to 1.6539 level. The price has bounced off that level which is encouraging. However, the drop now brings the 1.6596 level as the next hurdle again.
Categories: Forex Trading |
Loading ...
we expect gbp to come down to the 1.64xx area consider its high 1.6635 failing to penetrate
Hani,
There is a possibility. If I were to go short here (1.6566) and trading off the failure at the 1.6635 level, I would have to have may stop at the 1.6597 level. If more short term entry/short term trade with a downward bias, this is a good level to sell but would like to see momentum down soon. The price is stalled at the 100 bar MA on the 5 minute chart so at a crossroad. It can go either way from here. SO pick you bias and have your stop at the level you are comfortable with given your risk tolerance.
Greg
My general bias is towards the bear side of things as well, yet there has been a nice upwards channel it has followed for the most of this week.
Looking back on a lot of my past trading failures this seems like the kind of mix where I snap enter… lose money when it doesn’t go south and then make a quick revenge trade to the buy side this time only to double down on my losses. Those are the kinds of days that fear is made of.
Well said Travis. Although, one of my rules of trading is to just cut my losses and wait for a good entry, instead of trying to gain some “revenge.” It can really erase all your profits. Try to minimize your fear by looking for clues, and if a reversal happens just exit any losing trades and as I said, patiently wait for you next opportunity. It works for me and cuts out all the emotional decision making.
Travis/Sebastian,
Sebastian said it nicely. Some people have said being successful is 10% ability 90% mental. That might be too much but being able to control emotions is a key element. The “market” can be brutal if you get offsides. Do a trade for a reason from the clues the market gives you. IF the market does do what it SHOULD do, get out. Look for the next low risk opportunity. Try and keep risk to a minimum or a level that you are FULLY comfortable with taking. If the markets are more up and down volatility, take this into consideration. Easier said than done, but you can often see it develop. Also be sure to not overleverage. Trading successfully is a marathon.
I hope these suggestions and Sebastians helps you.
Greg
——————————————————————————–
Trading in the Foreign Exchange market involves a significant and substantial risk of loss and may not be suitable for everyone. You should carefully consider whether trading is suitable for you in light of your age, income, personal circumstances, trading knowledge, and financial resources. Only true discretionary income should be used for trading in the Foreign Exchange market. Any opinion, market analysis or other information of any kind contained in this email is subject to change at any time. Nothing in this email should be construed as a solicitation to trade in the Foreign Exchange market. If you are considering trading in the Foreign Exchange market before you trade make sure you understand how the spot market operates, how FXDD is compensated, understand FXDD’s trading policy and rules and be thoroughly familiar with the operation of and the limitations of the platform on which you are going to trade. This message and any files transmitted with it are confidential and intended solely for the use of the individual or entity to whom it is addressed. It may contain sensitive and private proprietary or legally privileged information. No confidentiality or privilege is waived or lost by any mistransmission. If you are not the intended recipient, please immediately delete it and all copies of it from your system, destroy any hard copies of it and notify the sender. You must not, directly or indirectly, use, disclose, distribute, print, or copy any part of this message if you are not the intended recipient. FXDirectDealer, LLC reserves the right to monitor all e-mail communications through its networks. Any views expressed in this message are those of the individual sender, except where the message states otherwise and the sender is authorized to state them. Unless otherwise stated, any pricing information given in this message is indicative only, is subject to change and does not constitute an offer to deal at any price quoted.