Tradex Forex Journal

There is a lesson to be learned from this break-even AUD-CHF trade: currency pairs with small intraday range produce a LOT of false signals, as far as day-trading is concerned.

This is something I have noticed over and over again.
 
Can you please explain this statement you made

"There is a lesson to be learned from this break-even AUD-CHF trade: currency pairs with small intraday range produce a LOT of false signals, as far as day-trading is concerned."

The reason I ask you this is because you traded AUD-USD and won and then took AUD-CHF and lost - followed up by mentioning that there's a lesson to be learned -

Both pairs have just about the same intraday range using the ATR.

So my question is how come it was ok for you to take a trade on the AUD-USD pair but you we're disappointed in the AUD-CHF trade when basically they share the same range?
Please explain - Thanks!
 
322170 said:
Both pairs have just about the same intraday range using the ATR.
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Hi,

This has nothing to do with ATR. If a currency pair has a small intraday range when I get a trading signal it usually produces a false signal.

To be more specific, if the intraday range is less than 45 pips or so (say from midnight to 8 AM, NY time) that means the trend is not strong enough that day (for trend-following systems), and a reversal is possible.

In that scenario I move the stop to break-even as soon as possible, or I abandon the trade at the same price, if I still can.
 
This thread has been neglected for over 4 months now (due to family problems).

But business is business, so let's get back to it, shall we?

i am currently short AUD/USD at 0.7765, 26 pip stop.

Australian CPI and Trade Balance coming out in a few hours, and my position is pretty "heavy", so behave, Aussie! :D
 
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