what to do tommorow

[robynvd 10]

Hi

Last week the EUR/USD and GDP/USD where are there highst point since I start trading. The USD/JPY standing low.

What must i do monday .... must i wait to buy ore sell.

 

Greetings

Robyn

Belgium

[Anna-Maria 10]

You must do whatever your strat or trading plans tell you to do when you arrive at the screen Monday morning.

 

If you switch on tomorrow morning, observe the price action & still have to ask yourself that question, then it's apparent you don't possess any kind of plan or template for observing your chosen market?

 

You don't of course have to do anything tomorrow!

 

There are 3 positions when trading: Long, Short & Flat.

 

If nothing's setting up - then do nothing.

 

Wait until the market signals you in via your strategy for a specific event.

 

Sometimes the best position to take is no position at all

[drk1t 10]

What to do tomorrow? I wish I knew for sure, but I don't. From the reading I've done the dollar my drop further, and it may drop a lot further. So I'd guess someone will try to make it an orderly decline which might cause it to go up...... In other words trying to anticipate what the dollar will do will do might be an act of frustration. I trade gold stocks and they usually move against the dollar. I loaded up on Friday and we will see how it works out. Most think the dollar will go down and the market has a nasty habit of making fools out of the most. But I'm playing a weaker dollar for now. This is pretty much in line with what most are saying about the dollar,

http://www.nytimes.com/2006/11/25/business/worldbusiness/25dollar.html

Good luck to everyone.

[ant 10]

Hi

Last week the EUR/USD and GDP/USD where are there highst point since I start trading. The USD/JPY standing low.

What must i do monday .... must i wait to buy ore sell.

 

Greetings

Robyn

Belgium

 

Hi Robyn,

 

Here's my analysis for the EC (Euro), FWIW. Note that I trade the CME Currency and not Forex. The EC finally broke out of a long, 7-month trading range (see chart). Anyone that bought before the breakout is now in the black, so I expect the upper bracket limit around 1.2950 to be strong support. The EC formed new price highs and a new oscillator high, which together indicates a new momentum high. One principle that I follow is that momentum precedes price, so I expect higher highs on the EC. That means I will have a long bias on the EC, and would not plan on going short unless the EC re-enters the bracket (i.e., a false breakout). On Friday, the EC broke out of its trading range and started to rotate, forming a small balance area and gaining acceptance at the new higher prices (see second chart). My trade strategy would be to go long around the POC at 1.3100, if the EC opens above the POC, or around the lower bracket limit at 1.3070. I would also go long if the EC trades above the balance area that formed on Friday around 1.3130. If the EC starts to penetrate the single prints, I would monitor market internals for weakness (e.g. a divergence) to position a long trade. However, if my stop is too far away from my entry according to my risk parameters, I would let the trade go. There is no way of telling where within the single prints the EC may stop and reverse. What I do not want to see is the EC retrace all of the single prints, because that would be at least short-term bearish. Anyway, this is my trading model. Hope this helps.

[ant 10]

The EC gapped up 75 ticks/pips and then closed the gap around 4am EST, stopping at Friday's POC around 1.3100 (see chart). This level remains a key reference point since it contains Friday's POC and single prints/low volume from today's trading. Today's POC/high volume node and the upper bracket limit around 1.3175 are also reference points for the next trading sessions. My bias is still to the long side for the EC.

[ant 10]

The Euro (EC) broke out of a long trading range on 11/22 and has been trending with shorter-term balance areas forming with higher value (see chart). Notice how balance and imbalance occurs on all timeframes. When in an uptrend, as the EC is currently in, I choose to only trade breakouts (long trades only) from the small balance areas that form. Also note what a trend looks like in a Market Profile graphic, i.e. nodes forming at higher levels as the market trends with single prints/low volume areas forming from range extension. These high volume nodes and low volume areas provide excellent support levels in trending markets. The traders job now is to be alert for the end of the trend. For now, the EC is trending and I still have a long bias. The second chart shows the trading range from where the EC broke out. Notice that momentum is starting to slow a bit in the EC, but I'm still expecting higher highs. One thing I'm trying to improve in my currency trading is holding for longer periods while the trend is intact as opposed to closing trades at the end of a day or two.