On the 1H chart here, it is clearly stated that since price action has not break out of the bearish trend line, there is nothing to do.
WHY ? Because if you think you can pre-empt the market moves, sometimes Mr Market may disappoint you and reverse the move. Of course, you may get lucky from time to time but that is risky !
Sell ? Maybe, but also not yet. WHY ?
Because the last closing candle shows bullish strength and is likely to continue for a while.
It could either goes right up , return back into the bullish trend line, by which you would know selling is out. But it can be short lived as you can forsee resistance roadblock ahead.
So, at 0.5879 , the price may reverse and come tumbling down OR
it could break out of the resistance and charge higher.
In analysing chart, you got to be able to have the above conversation in your head swirling around and know what to do next, else you would be staring at it, watching the price movement and changing from 1H to 4H to 15 mins and back to 1W and getting lost in the jungle. Stop complicating things. It is not that hard , really.
IF you want to use TA, then be loyal and not let FA news of any kind tells you otherwise. The constant bombardment of news especially COVID-19 is so overbearing that it can seriously cause you to have panic attack and worse, freeze your action. In TA, you let the charts tell you the story and not the other way round.
If you read all the news daily, then you start thinking what if interest rate is going to be lowered further, what if the retail sales come down this quarter , so on and so forth. Nothing wrong except that there are so many variables that can truly affect the price of currencies and that is why it is the most liquid assets around. As TA practitioner , you believe or accept the fact that all news are already incorporated into the chart and you just need to REACT to it.
REACT NOT PRE-EMPT the move. - REMINDER TO SELF !!!!
REACT means - if bullish trend line is broken down, get ready to sell. NOT SELL IMMEDIATELY because there could be false sell signals to trap you. A few times of false signals may dash your confidence and take out your trading mood. You want to avoid that as much as possible.
In short, just because there are so many trading opportunities daily, you do not have to TRADE ALL. In fact, the more pairs you trade, the more confused you might get. Stay with 1-3 pairs for a start and really fall in love with these guys. Know these pairs well, their temperament, their swing moods, etc. You will be surprised what you can really find out just from a chart alone. It is like looking at your date's eyes and you can tell her life story. Something like that , haha.
One more thing, stop fixating with has this pair bottomed out or reached the top ? Trade what you see on the chart, treat the price action as a continuous journey of ups and downs and some sideways plateau from time to time. That way, it may help you to avoid jumping the wrong conclusion it has bottomed and out of greed/fear, you start to bet big to take revenge on past losses or earn some bragging rights to your friends that you had spotted it correctly.
Remember, you are not rewarded for spotting bottom or top , leave it to the experts out there who many a times got it wrong too. Imagine with sophisticated tools and MBAs, CFAs, what have you , if they can get it wrong, what is the probability that you could get it right ? Maybe, maybe you could but more importantly is did you bet on it if you spot it?
Haha, you know what i mean. Were there not times, your gut told you to long or short this or that but you hesitated. WHY ? You were afraid that you might be wrong or your mind starts to ask : what if ........questions.......
I have said before, only your experience is precious and valuable as nobody can take that away from you. NO need to compare your profits with anyone unless you want to. Trade micro lots if necessary to hone your skills. You will made so much self discoveries on your own if you review your past trades - win and losing ones.
WHY ? Because if you think you can pre-empt the market moves, sometimes Mr Market may disappoint you and reverse the move. Of course, you may get lucky from time to time but that is risky !
Sell ? Maybe, but also not yet. WHY ?
Because the last closing candle shows bullish strength and is likely to continue for a while.
It could either goes right up , return back into the bullish trend line, by which you would know selling is out. But it can be short lived as you can forsee resistance roadblock ahead.
So, at 0.5879 , the price may reverse and come tumbling down OR
it could break out of the resistance and charge higher.
In analysing chart, you got to be able to have the above conversation in your head swirling around and know what to do next, else you would be staring at it, watching the price movement and changing from 1H to 4H to 15 mins and back to 1W and getting lost in the jungle. Stop complicating things. It is not that hard , really.
IF you want to use TA, then be loyal and not let FA news of any kind tells you otherwise. The constant bombardment of news especially COVID-19 is so overbearing that it can seriously cause you to have panic attack and worse, freeze your action. In TA, you let the charts tell you the story and not the other way round.
If you read all the news daily, then you start thinking what if interest rate is going to be lowered further, what if the retail sales come down this quarter , so on and so forth. Nothing wrong except that there are so many variables that can truly affect the price of currencies and that is why it is the most liquid assets around. As TA practitioner , you believe or accept the fact that all news are already incorporated into the chart and you just need to REACT to it.
REACT NOT PRE-EMPT the move. - REMINDER TO SELF !!!!
REACT means - if bullish trend line is broken down, get ready to sell. NOT SELL IMMEDIATELY because there could be false sell signals to trap you. A few times of false signals may dash your confidence and take out your trading mood. You want to avoid that as much as possible.
In short, just because there are so many trading opportunities daily, you do not have to TRADE ALL. In fact, the more pairs you trade, the more confused you might get. Stay with 1-3 pairs for a start and really fall in love with these guys. Know these pairs well, their temperament, their swing moods, etc. You will be surprised what you can really find out just from a chart alone. It is like looking at your date's eyes and you can tell her life story. Something like that , haha.
One more thing, stop fixating with has this pair bottomed out or reached the top ? Trade what you see on the chart, treat the price action as a continuous journey of ups and downs and some sideways plateau from time to time. That way, it may help you to avoid jumping the wrong conclusion it has bottomed and out of greed/fear, you start to bet big to take revenge on past losses or earn some bragging rights to your friends that you had spotted it correctly.
Remember, you are not rewarded for spotting bottom or top , leave it to the experts out there who many a times got it wrong too. Imagine with sophisticated tools and MBAs, CFAs, what have you , if they can get it wrong, what is the probability that you could get it right ? Maybe, maybe you could but more importantly is did you bet on it if you spot it?
Haha, you know what i mean. Were there not times, your gut told you to long or short this or that but you hesitated. WHY ? You were afraid that you might be wrong or your mind starts to ask : what if ........questions.......
I have said before, only your experience is precious and valuable as nobody can take that away from you. NO need to compare your profits with anyone unless you want to. Trade micro lots if necessary to hone your skills. You will made so much self discoveries on your own if you review your past trades - win and losing ones.
Note
see my comments on AUDUSD
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.