Yesterday on the EUR/USD daily graph showing an uptrend, the RSI was 75 and ADX was in the 40's.
Expecting a reverse I went short @ 1.39066. But the market continued up closing me out at 1.39291.
As a novice what else should I have considered?
Thank you
What time did you make this trade ?
Hard to help with analysis here given the lack of detail.
Yesterday on the EUR/USD daily graph showing an uptrend, the RSI was 75 and ADX was in the 40's.
Expecting a reverse I went short @ 1.39066. But the market continued up closing me out at 1.39291.
As a novice what else should I have considered?
Thank you
Yesterday on the EUR/USD daily graph showing an uptrend, the RSI was 75 and ADX was in the 40's.
Expecting a reverse I went short @ 1.39066. But the market continued up closing me out at 1.39291.
As a novice what else should I have considered?
Thank you
You should consider whether RSI being 75 and ADX in the 40s is enough to expect a reversal.As a novice what else should I have considered?
If your TA is based on a Daily graph then you need a stop and target to reflect this.
This is not too different from FTSE, which I was trading. I opened a long trade near the close of the pin at A but I did not have a stop close. It was a token close about 50 away, in case of a computor crash. When I am present I close manually. See what happened at B? It just went level with A in a spike action designed to take out stops. Often it goes beyond the level. What I think happens to reverse it sooner, rather later, is that buyers are there with their orders, ready to enter long.
At the other end, the same happened with D, when it levelled with C.
All this happened so quickly that I had no time to react manually , the index was up again very quickly, leaving me still in the trade.
I give pins loads of breathing space now, It seems as though everyone is trying to run them.
Yesterday on the EUR/USD daily graph showing an uptrend, the RSI was 75 and ADX was in the 40's.
Expecting a reverse I went short @ 1.39066. But the market continued up closing me out at 1.39291.
As a novice what else should I have considered?
Thank you
I give pins loads of breathing space now. It seems as though everyone is trying to run them.
I blame Trader Dante and his thread telling everyone to place their stops just below the pin.
Edit - What makes me laugh is all these people that say they don’t trade or believe in pins. At the same time they are happy to trade a 10min chart similar to the one you have just shown.
I blame Trader Dante and his thread telling everyone to place their stops just below the pin.![]()
It's not a question of whether everyone is trying to run them. It makes sense to take notice of them. TD's pins are Pinochio pins, if I remember correctly. I use anything that makes sense to me and I was not stopped because, as you say, one has to be wary of them. That does not mean to say that I was happy when an attempt was made to take out my stop. Who can tell whether the price would bounce keep on going down?
Split,
I was only having a having a bit of fun. In actual fact I was hooking on my bait for an un-related fishing expedition.
From what I can gather, I have marked you up in my head as having a similar trading style to me.
Back on topic, it was a big turning point for me when I shed my Scottish roots and paid for just a little extra space on the charts for my stops. I think you get what you pay for.
Split,
I was only having a having a bit of fun. In actual fact I was hooking on my bait for an un-related fishing expedition.
From what I can gather, I have marked you up in my head as having a similar trading style to me.
Back on topic, it was a big turning point for me when I shed my Scottish roots and paid for just a little extra space on the charts for my stops. I think you get what you pay for.