FX Trade Setups, Entries, Management and Exit

eur/cad next area of resistance at 3943. Will be watching how price handles itself around that level.
 
er/cad - if it breaks above 3943 I'll move my stop up to 3940 - which is the s/r level minus spread. Very tight.
 
It' goes against the grain getting in where I am now as the move feels to be already too well developed to be profitable at that entry level, but it was pointed out to what I was doing before was attempting to pick tops and bottoms and going against what was then the current flow.

The upside to trading with discomfort (good title for a trading book) is that as with the eur/cad trade currently on, I wouldn't normally have gone in on price crossing the 49 average; that would have been an indication of potential change of bias (from down to up in this case) and I would need a retest of the 49 average for support before considering going in long.

What I realised was that my previous perspective had become so 'set' as to what I was seeing that I missed the plain fact that it is precisely when price breaks through that average that the momentum is greatest, and therefore, quite tradeable.
 
Draghi speaks in 10 mins and there is a bunch of business climate/confidence/sentiment data coming out too. Won't even think about moving my stop in close with that coming up just to watch the pip-snatchers take my lunch.
 
A crisis of faith as I like the look of gbp/aud for a long based on momentum, but the distance it has traveled from the average screams at me that it's about due to fall back. I shouldn't be paying any attention to that, but I am.
 
The old PB trading method would have had me in long gbp/usd at 10:15 at around 6071 at best. Having switched to a momentum based approach, I'm still watching, but not in.
 
nzd/jpy short initial stop of 81.77 was based on monthly R2 + 5 pips. Daily pivot is at 81.74. Not terribly impressive performance so far and I'll review at close of current bar.
 
I'm only trading a quarter normal size during this proving period and only focusing on one pair at any time. If I kill nzd/jpy I'll potentially be interested in a short eur/gbp.
 
Purple Brain said:
A crisis of faith as I like the look of gbp/aud for a long based on momentum, but the distance it has traveled from the average screams at me that it's about due to fall back. I shouldn't be paying any attention to that, but I am.
Click to expand...
What do I know? I know I should have stuck with my rules. Should have gone with the momentum...
 
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