Guided trails in the forest
I like to imagine the charts are like a jungle trail sometimes. And the more people are trading on it, the more trails and footprints are left behind for those trekking behind to follow.
On this 1H chart, it shows nicely how after the long slide down, the price rebounded strongly.
However, one common mistakes that many traders made (including myself) is not monitoring the price action after the trade has been executed.
You will know what I mean when you see this chart :
Here, even if you executed at the 1st selling opportunity but failed to take profits thereafter, you would caused your own profits to diminish as the price action rebounded strongly back to the 2nd selling opportunity. That does not include your losses had you taken the 3rd and 4th selling opportunities. It is not the end of the story once a trade is executed, the price action is fluid, it can move either way and not necessarily it must obey your rules of engagement, be it trend lines or price action patterns.
So, same thing apply for EURCHF. If you are a short term trader, then this move last night is very good and you can take some profits first. Those who have a mid to long term view will continue to hold.
On this 1H chart, it shows nicely how after the long slide down, the price rebounded strongly.
However, one common mistakes that many traders made (including myself) is not monitoring the price action after the trade has been executed.
You will know what I mean when you see this chart :
Here, even if you executed at the 1st selling opportunity but failed to take profits thereafter, you would caused your own profits to diminish as the price action rebounded strongly back to the 2nd selling opportunity. That does not include your losses had you taken the 3rd and 4th selling opportunities. It is not the end of the story once a trade is executed, the price action is fluid, it can move either way and not necessarily it must obey your rules of engagement, be it trend lines or price action patterns.
So, same thing apply for EURCHF. If you are a short term trader, then this move last night is very good and you can take some profits first. Those who have a mid to long term view will continue to hold.
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