Weekend gap in FX
- Thread starter vivanov
- Start date
Again, if JPY crashes, so be it and I'll be fine. I realy don't believe a huge "gap" is any real danger even if King Kong in Ping Pong gets his nukes working. ... in any case, I am confident that even in regards to an idiot like King Kong, we would see alot of tension build before a nuclear strike.
My present stop levels on my long JPY positions are :
usd/jpy: 119.89
nzd/jpy: 79.56
gbp/jpy: 224.45
... do I look worried ? >
Also, don't forget that I already took partial profits on thursday & friday on nzd/jpy ... these partial profits on nzd/jpy cover the possible loss on nzd/jpy if stop is hit.
It doesn't have to gap 1000 pips to wipe you out. With your attitude, if it just fell 500 hundred pips in the space of a few days, you'd probably be in there buying it with the thought that "this move is way overdone" -- is this a good guess?
Then when it keeps falling lower, you'll keep stopping out and getting back in; eventually you may even just cancel your stops altogether, with the attitude that the lower it goes, the better the buy. You'll get carried out in slow-motion, no gaps required here. This will have to be another angle you'll want to be wary of in the future.
The gap on that date was in the direction of the market. The market had just experienced a triple lower RSI trough and short grail just before the gap. Generally, these gaps are in the direction of your trade if you are not fighting the market and you are trading as a position trader. Nothing to worry about.
Quote from Buy1Sell2:
The gap on that date was in the direction of the market. The market had just experienced a triple lower RSI trough and short grail just before the gap. Generally, these gaps are in the direction of your trade if you are not fighting the market and you are trading as a position trader. Nothing to worry about.
Simply a misleading advice above - unless every of your position trade's direction has been and will be right forever without any losing one; and you expect every trader is trading as good as you are.
Otherwise, an average trader would still have a (50%?) chance entering a wrong position on that event. That should be something to worry about.
Quote from OddTrader:
Simply a misleading advice above - unless every of your position trade's direction has been and will be right forever without any losing one; and you expect every trade is trading as good as you are.
Otherwise, an average trader would still have a (50%?) chance entering a wrong position on that event. That should be something to worry about.
Yes, furthermore, the refference to something as subjective as a moving average based oscilator is quite useless ... which time frame, which values pluged into the RSI ?? ... and in any case, during a trending market, you will almost always see an oscilator such as an RSI show an "oversold" or "overbought" reading nearly at the begining of the trend ... thus suggesting to reverse (or at least take profits) way too early.
I am dead against oscilators for several reasons ... but thats another subject.