EURNZD --downtrend opportunity, but short at where?
Updated
EURNZD showing signs of downtrend and also below the 1.614 resistance.
One of the frequently asked questions by traders themselves is: at what price shall i execute the trade? There are two options: you either short at breakout or at retracement. The answer to that is depends on:
1) whether you are a breakout trader or retracement trader. Both methods are useful, just whether it suits your cup of tea.
and 2) your risk to reward, specifically: how much you are willing to risk per trade and do you give the market enough room to wiggle about?
For me trading forex is different than futures and i will short when the market retraces upwards but as long as its below 1.614. Cut loss will be 1.617. Potential supports are highlighted and will trail my stops as prices breaking below them.
This is not a buy/sell call, do double confirm with your trading plan. Happy trading everyone =)
One of the frequently asked questions by traders themselves is: at what price shall i execute the trade? There are two options: you either short at breakout or at retracement. The answer to that is depends on:
1) whether you are a breakout trader or retracement trader. Both methods are useful, just whether it suits your cup of tea.
and 2) your risk to reward, specifically: how much you are willing to risk per trade and do you give the market enough room to wiggle about?
For me trading forex is different than futures and i will short when the market retraces upwards but as long as its below 1.614. Cut loss will be 1.617. Potential supports are highlighted and will trail my stops as prices breaking below them.
This is not a buy/sell call, do double confirm with your trading plan. Happy trading everyone =)
Trade active
Decided to take a smart risk by shorting at 1.607 with a newer cut loss at 1.61.Note
disclosure: this trade wasn't stress free, after executing the short 1.607, it went up to around 1.608 zone before resuming its downtrend. Hindsight should have shorted at 1.608, unfortunately the fact is this is trading and we cant trade on the past.
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