Forex trading strategies – Should we or should we not take this trade?
Today’s post is one of the forex trading questions that i got over the weekend which i thought would be helpful to share
Question: I spotted a pin bar pointing down with the 150ema supporting the cadjpy. The daily chart seem to be heading down but the weekly chart seem to be going up. In these case, is it safe to sell as the day seems to be heading down although the weekly still seems to be pointing up? My Reply: No, when i trade the daily forex chart, i will make sure the daily and the weekly are in the same side of the trend. Although its a price action pin bar off the 150, but the pin bar looks too small to take away the strength of the uptrend. I may be wrong on this, but given the small pin and the weekly uptrend. i will skip this trade.
Forex Trading Strategies – Here’s the recent Forex chart update on CadJpy
Follow up: True enough, the price action pin bar failed to take price down and its stoploss was triggered. Had we placed our stoploss at the top of the pin, we would have gotten stop out. Take away Tip: Pin bars happen & form all the time, it is by picking the right ones to trade in. There are several criterias which we use to call for a good trade and that is taught in our Winning Asia Forex Mentor Price Action Forex Course.
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