Well, end of the year ahead ;)
I remember on of my favorite fx mentors said: 'you shall never trade in December'. You may ask why? The reason is combined: low volumes, erratic movement, central bank and funds reports and balance results publication, to name only few.
Situation is difficult to access and the harmony of the markets and pairs is impaired. Remember the last week Thursday and ECB's decision?
This leads me to conclusion to ask you to trade with stop loss always. Rules and emotions are the major items to be learned in this business.
In one of the previous posts I mentioned that I plan not to trade until the end of this year. Well, I broke this rule with poor results. Time for a little summary of the rules and reminder. And what about you? Do you have your own rules? Do you run a diary? Do you verify your trades? How often?
... to become a real man is not a days job...
FOCUS on price movement in relation to:
- MA’s
- Trendline Support / Resistance
- Big Numbers, e.g. 00’s, 000’s, 0000’s.
Look for MACD to confirm signals.
Homework for price movement should be done before looking at the MACD signal.
Do not take every MACD signal.
Look at market emotions, e.g. candle formations at critical S/R points.
Wait for the playground to be clear, i.e. no messy MA’s, etc.
Wait for the market to show its hand with regard to rhythm and a definite direction.
Go with the rhythm and trend of the pair.
When price breaks through the 89 ma, it tends to move back to the 21 ma before continuing back in its direction.
When price breaks the 200 ma, it moves back to it before moving on.
When price breaks the 21 ma, it comes back to it before moving on to the 89 ma.
ONLY counter-trend trade when:
- near major S/R
- R:R is 1:1 or better
- CT move is towards the 21ma as a profit target
Like it, use it, master it!
Next week there will be provided more rules of this system. Take care and support if you wish.
... to become a real man is not a days job...
FOCUS on price movement in relation to:
- MA’s
- Trendline Support / Resistance
- Big Numbers, e.g. 00’s, 000’s, 0000’s.
Look for MACD to confirm signals.
Homework for price movement should be done before looking at the MACD signal.
Do not take every MACD signal.
Look at market emotions, e.g. candle formations at critical S/R points.
Wait for the playground to be clear, i.e. no messy MA’s, etc.
Wait for the market to show its hand with regard to rhythm and a definite direction.
Go with the rhythm and trend of the pair.
When price breaks through the 89 ma, it tends to move back to the 21 ma before continuing back in its direction.
When price breaks the 200 ma, it moves back to it before moving on.
When price breaks the 21 ma, it comes back to it before moving on to the 89 ma.
ONLY counter-trend trade when:
- near major S/R
- R:R is 1:1 or better
- CT move is towards the 21ma as a profit target
Like it, use it, master it!
Next week there will be provided more rules of this system. Take care and support if you wish.
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