Online Forex Trading – What a mistake I made that trade?
Hello everyone, I made a trade in the GBP / USD chart today in 1 hr .. However, I am about to be stopped out .. The details of the trade are present in http://the-forex-trading.blogspot.com I can say that is wrong in my technical analysis? Thanks
I think I understand correctly that you're short, right? You did it, essentially, the low today, correct? RSI and MACD are both showing positive divergence, and had already begun to transform itself before the steep decline. Are reacting, not anticipating. For example, the level, 618 Fib is the place to go short, not to mention three days later, after a 150 decline PIP. The MA 200 is a refernce point, not a level of support or resistance. MACD and RSI indicators are both Momentum. They can not be used to confirm the others. Choose one, but do not call this for two reasons. Both show the same thing in different ways. You will also learn to never, ever trade in a hard fall like that. I had to develop my own rule, I never seen anywhere else "Never trade in bars long term." These are the bars of exhaustion, or at least puts the market will take a break. Wait the market resumes after one of these reorganizations. Trade retracement in the direction of the trend, and you reduce your risk considerably. In case, if you would have come out short of the first jump, with a stop outside the top of this small rally (stop above the second horizontal yellow line – .50 Fib?), you would have success very small, probably a third of what you're looking to lose now. But instead, when you exchange a long bar, where you place your stop, than a mile away. Huge risk! Why accept this risk. Look for low-risk routes, not huge risk. Out of all the signs you gave, you do not seems to recognize that these are the points where the trade is intiated. If you are going to use a 200MA as a trading signal, then there trade, not more than 60 pips. Or trade it the second time it bounced off him and not there. If you're going to draw a line Fib, and he jumps off, then trade! This is trade. Or the next retracement trade and distribution of support. Where does it say to wait several hours? The other problem is that you chose the strongest pair of the gang to go short. It's like trading with the trend. You're just short in a downtrend. But what is the trend here? Depends on the term, is not it? Even when choosing a pair to trade. Enjoy the weak, not strong. Another problem is that you changed a story, without recognizing that each cause or effect produces different results. Britain emerged with some disappointing news last night, causing a 100 pip morning. If you are going to trade the news in the sense of the news, then you should negotiate when "the news, not many hours later, after a decline of 100 pip. If you look back on all the press releases, regardless of currency or the stock market, 90% of are a mere blip on the screen, affecting nothing but the very short term, very minor, then the return to market everything he was doing. If you will jump in the middle of a situation, you better know the rules of the situation, which signals that the situation is more are, and how severe the cause situation. The small wavy lines just to help us evaluate and interpret all this, and not be alone in a void. You seem to have little understanding of what is behind the wavy lines, and the more austere horizontal, or what to do when.
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