Mean Reversion Trading NZDCHF Swing Sell
Updated
Mean Reversion.
WHen price goes in one direction
for too far or long, it will tend to
collapse back to the average price.
Stochastics 20,1,1 shows overbought,
Price is tanking, I entered on a sell market.
I think this has to be a swing trade where
one cannot be greedy.
I think that the forex market isn't like the stock market where it can continue trending, one of the reasons being due to inflation, where price will always get more expensive for goods, services, and stocks also (since it deals with goods and services as its core.)
Unless if something major that shakes a country and keeps going, such as JPY negative interest rate for years, otherwise it is rare to see price keep on running and seeing no end.
On the other hand, products such as commodities, or metals like gold and stocks and maybe REITs (I am not familiar with REITs but with some common sense, I think that landlords would only want to keep on increasing the rent prices to pad their pockets, such as in Singapore where the price isn't controlled and rental prices can shoot up, and even if the units are not rented out FOR YEARS, the property owner doesn't care and am not affected, one of the reason being they are holding onto land deed which property prices Singaporeans call as supply and demand, but the demand is just as artificial as labubu sales due to influx of rich foreigners buying into government housing in Singapore.)
Anyway, country and country will definitely have a push and pull effect, don't expect prices to keep going for no rhythm or reason. The stock market is there for a reason if you wanna go for a no rhythm and no reason trending market.
WHen price goes in one direction
for too far or long, it will tend to
collapse back to the average price.
Stochastics 20,1,1 shows overbought,
Price is tanking, I entered on a sell market.
I think this has to be a swing trade where
one cannot be greedy.
I think that the forex market isn't like the stock market where it can continue trending, one of the reasons being due to inflation, where price will always get more expensive for goods, services, and stocks also (since it deals with goods and services as its core.)
Unless if something major that shakes a country and keeps going, such as JPY negative interest rate for years, otherwise it is rare to see price keep on running and seeing no end.
On the other hand, products such as commodities, or metals like gold and stocks and maybe REITs (I am not familiar with REITs but with some common sense, I think that landlords would only want to keep on increasing the rent prices to pad their pockets, such as in Singapore where the price isn't controlled and rental prices can shoot up, and even if the units are not rented out FOR YEARS, the property owner doesn't care and am not affected, one of the reason being they are holding onto land deed which property prices Singaporeans call as supply and demand, but the demand is just as artificial as labubu sales due to influx of rich foreigners buying into government housing in Singapore.)
Anyway, country and country will definitely have a push and pull effect, don't expect prices to keep going for no rhythm or reason. The stock market is there for a reason if you wanna go for a no rhythm and no reason trending market.
Trade closed manually
Exited for breakeven. Still thinking of what they nature of forex is. Price is going upwards by higher high higher lows. however, I felt that price is mean reverting. But I exited at breakeven because I do not have the courage to hold on due ot past experiences, and it would also mean that I am trading against the grain. Shall see.Note
-0.1R for commission and 0.1R for loss.
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