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I have been profitably trading euro South for most of the year. 75% of the trades are southbound, and 25% of the trades were northbound. The three strikes & out technique showed a technical top at the 1535 level. I traded it successfully. This tool is not a reversal signal, but rather a retrace signal.
Since I don't know anyone who gets tomorrows newspaper today, nor anyone who has a friendly genie in a bottle, I am only able to calculate some analysis that helps in determining what may be happening. I trade that maybe with an IF>THEN proposition, which means I most usually have orders placed for both directions. If I am confident enough to be already in in one direction, then I stop and reverse, always trying to lock in profit and moving stops to break even at the earliest techncal opportunity no matter which direction I am trading.
In the case of euro at hand, a capable trader who was actively trading this period from last Thursday was able to trade south for 120 and north for 200, garnering in excess of 300 pips in gains.
Way too many traders think trading is a contest of being right. It takes a lot of work to get over this hurdle. I know that I will loose the game of being right a vast majority of the time, so I don't play that game. I play the game of being profitable vs unprofitable instead.
Iris has good foundation to be planning for South euro. Like all others, he cannot be right more than about 55 or 60% of the time, just like the rest of us. He is going to get his ride south; it just was not last week. Euro is at big crossroads here. My charts said that a break back above 1510 spells trouble for south. Meanwhile my three strikes & out south trade worked just fine.
Now, I will wait for the pair to show itself as to whether it wants to go north or south based upon this strong move north. Based upon its almost vertical rise, I will be happy to apply the 50% rule to scalp it southbound.
The large majority of traders are touting north euro. When that song gets uniformly strong, I'll trade south , thank you.
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