Short at 1.2859
Eur/USD
- Thread starter ForexPro
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Okay. I have done it.
Short at 1.2940
Using a 500 point stop
Short at 1.2940
Using a 500 point stop
Unwind.
Quote from downrivertrader:
Okay. I have done it.
Short at 1.2940
Using a 500 point stop
very nice so far. Your post coincided with class A hourly bearish divergence on the histogram. Very nice indeed. The only part I didn't like was that there was no RSI divergence or failure swing just yet for confirmation.
I am going to TP at the 2840 area if it is there around 9:30. May go long here also.
Quote from downrivertrader:
Okay. I have done it.
Short at 1.2940
Using a 500 point stop
I wanted to make a comment here concerning what I believe was the hourly MACD Histogram divergence and the placement of stop. I prefer to trade the hourlies and dailies when I can , because you are able to get a wider stop in to filter out the noise. I generally use at least 100 pips as a stop when I see my signal on hourlies. You used a 500 pip stop--is that more of a daily or weekly chart analysis?
There is a lot of indecision at this level in the market and I am certain it is because 1.30 looms. Bulls just want to keep buying the dips here. I think the next hour or two could be critical to the bears case. My opinion is that we will see a downward move at some point, but I am not sure it is right now. The RSI now is attempting to cross above the OB line again. If it would fail to do that, I would see that as an opportunity to sell. Many times when a market has been moving up strongly like this one, it needs not only to have the Histogram divergence on hourlies, but also an RSI failure swing before the real down move occurs. Also, a third lower Histogram peak coinciding with RSI failure swing would be very strong. Absent those items, we may need higher price to get selling into the market. Mind you, this is only hourly chart analysis--not daily or weekly. As always when trading hourly charts, I would recommend at least a 100 pip stop loss.
The RSI has finally arrived at the RSI OB line here at the end of the day. What I am looking for is a failure of the RSI to cross and hold above the OB line on the hourly chart, thus strengthening the idea of an hourly price reversal and if that occurs, I will add positions. If not, then we'll see higher prices and of course at some point we have to test 1.30 anyway --just seems like it would have to. The issue with the analysis is that it may hold over the weekend which is normally not an issue, but with the equity market down so much, you never know what Sunday night will bring. A gap? --
Quote from downrivertrader:
Okay. I have done it.
Short at 1.2940
Using a 500 point stop
My wife did similar think, when her stop was taken the account was down 60%
Well I warned her many timesâ¦
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