Jump to content
Sign in to follow this  

Anyone watching AUD/CAD?

Recommended Posts

Noticed a move today. Could be important. I'm not trading yet, just watching. Interested to hear opinions.

AUD_CAD_20190102_18.23.png

Share this post


Link to post

OK OK. No one is watching AUD/CAD. Funny goings on though. I shorted it late last night and the price went down significantly before returning close to the cloud. My 9120 limit was triggered so I'm now out of the trade and thinking of shorting again. Both the AUD and NZD had these long wicks. Any ideas why? I'm solely TA trading but interested to know.

AUD_CAD_20190103_19.12.png

  • Like 1

Share this post


Link to post

@Nelsy-Boy

I looked at it yesterday based on your post but it is not a potential trade that I am following at this moment in time.

Even though the current price is below its 20, 50, 100 and 200 DMA have a look at how the moving averages curves are sloping.

AUD_CAD_20190103_19_29.thumb.png.5ba58acf7e5fb1f5d95ddb54a25eb0d3.png

None of them are sloping downwards strongly and therefore based on my trading system I would not enter the trade. I would need at least the 20 and 50 day moving average curves sloping downwards more which may happen going forwards to even consider looking at it. 

What is your trading strategy behind trading FX pairs such as this? Are you looking to trade a long term trade or merely day trading over a 24 hour period? I don't quite understand. How are you deciding when to enter the trade? What is your criteria and time period for trading FX Pairs?

Share this post


Link to post

Thanks you guys @TrendFollower and @elle. That last post of mine was the first time I replied to my own posting. How lonely was that :(

On this particular trade I shorted based on a significant engulfing candle and I fancied my chances. I only trade on the daily chart TA. I appreciate your comment on the angle of the lines @TrendFollower. I'll watch that one in the future.

Share this post


Link to post

@Nelsy-Boy,

May I please be critical without any offence being taken? Shorting can be perceived by some as being more risky than going long. So to initiate a short trade based on partly 'fancying your chances' is an absolute no no in my personal opinion. 

I have stated this on other threads but you really need a 'Trading Plan'. Then you need a clearly defined 'Trading Strategy'. This will lead you to develop a 'Trading System' where you follow clear rules of 'Entry and Exit' based on your 'Trading Style and Philosophy'. Without this you are merely 'chancing' and over time this will eat into your capital.

Treat capital as an asset you must defend at all costs. You must try to lose as little capital as possible. It is about capital protection first as without capital you cannot trade. I only trade using profits from my investing portfolio.

Capital cannot simply be traded away based on fancying your chances. I appreciate you identified an engulfing candle but you must ask yourself why this would increase your chances of success in the trade and put the odds in your favour? Was your stop loss distance correct? It may well have been and it may be that your trading is effective hence you got stopped out early and minimised your losses. There is nothing wrong in losing a trade. I shared two losing trades with the IG Community where I got stopped out on Ripple and Stellar a few months back. Though both of those trades met my entry criteria both were unsuccessful for me. I am not having a go at your or anything to please do not take it the wrong way. I just merely trying to help you as you seem to ask some really important questions and come across someone who wants to learn and improve. 

Share this post


Link to post

Thanks @TrendFollower. This was a funny one for me. I will only short when price falls and closes below the cloud and now thanks to @elle, also below the 50 and 150 EMA. The only difference this time, is that I broke my rules by not waiting for a close of candle. I still shorted though and it hit my limit for a profit this time. My stop would have been above the cloud but this did not come into play. The candle has now closed below with a very small candle going on today with limited movement. However, whilst my trading plan would say short this again, I am now wary of the trade due to the spike down then up. I appreciate your comments and am quite happy to receive them all. Thank you.

Share this post


Link to post
14 hours ago, Nelsy-Boy said:

OK OK. No one is watching AUD/CAD. Funny goings on though. I shorted it late last night and the price went down significantly before returning close to the cloud. My 9120 limit was triggered so I'm now out of the trade and thinking of shorting again. Both the AUD and NZD had these long wicks. Any ideas why? I'm solely TA trading but interested to know.

AUD_CAD_20190103_19.12.png

about 380 odd points profit?

Nice to get a good trade on over the spike. But unfortunately from an analysis point of view because this is a one off flash, it may be worth removing from your analysis. (or put on the same trade again if you think it could remain going down)

  • Thanks 1

Share this post


Link to post

Join the conversation

You are posting as a guest. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
You are posting as a guest. If you have an account, please sign in.
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

×
×