What is best strategy for daytrading?

ironchef said:
Why may I ask?
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That my strategy should definitely be to buy EURJPY and not sell it was made obvious by the fact that it was on the verge of hitting my take-profit target—not my stop loss—as was reflected by the image I attached.

However, if you are asking in general why I would enter a long position at that level, assuming your question was serious rather than snarky, then here is my serious answer…

Entering a long position was not “definitely” the right move to make, of course! My attitude is that the market can, and does, do whatever it wants—so there are no guarantees.

But as far as my justification for going long, it is my experience that, generally speaking, foreign currency pairs will distance themselves only so far from where they open at the beginning of each 24-hour market cycle, after which they will inevitably reverse themselves and head back toward the level from which they started.

Moreover, if one identifies the best simple moving average to serve as a valid reflection of which direction price is ultimately headed, and then measures how far price is willing to separate itself from this valid representation of its true trajectory, one will once again discover that, generally speaking, foreign currency pairs will typically deviate only so far from this accurate measure of trend before bouncing back toward the mean.

In that EURJPY had reached both of these “limits of separation,” the statistical probability that it would continue heading south was extremely low. Hence, the odds that it would turn north, if only temporarily, were very much in my favor.
 
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Take only entries that coincide with a long term indicator around the weekly ATR. Day trading, need to signify whether its a trend day or consolidation day in the derivative your trading. Even than its about trading around the daily ATR.
 
Take all indicators that you've been grasping onto for your security and toss them in the garbage. They will only impede your ability to actually grasp how trading works.
 
expiated said:
That my strategy should definitely be to buy EURJPY and not sell it was made obvious by the fact that it was on the verge of hitting my take-profit target—not my stop loss—as was reflected by the image I attached.

However, if you are asking in general why I would enter a long position at that level, assuming your question was serious rather than snarky, then here is my serious answer…

Entering a long position was not “definitely” the right move to make, of course! My attitude is that the market can, and does, do whatever it wants—so there are no guarantees.

But as far as my justification for going long, it is my experience that, generally speaking, foreign currency pairs will distance themselves only so far from where they open at the beginning of each 24-hour market cycle, after which they will inevitably reverse themselves and head back toward the level from which they started.

Moreover, if one identifies the best simple moving average to serve as a valid reflection of which direction price is ultimately headed, and then measures how far price is willing to separate itself from this valid representation of its true trajectory, one will once again discover that, generally speaking, foreign currency pairs will typically deviate only so far from this accurate measure of trend before bouncing back toward the mean.

In that EURJPY had reached both of these “limits of separation,” the statistical probability that it would continue heading south was extremely low. Hence, the odds that it would turn north, if only temporarily, were very much in my favor.
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I wasn't snarky, just want to understand your thought process.

Thanks.
 
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