How do you feel trading at historical highs/lows?
There are traders that don’t feel comfortable trading at historical highs/lows, because they think the market is to retrace back sooner or later, and its alright, if you don’t feel comfortable trading any market condition, don’t trade it, there are plenty of other pairs and crosses.
Myself, I feel comfortable trading at historical highs/lows, its not always about buying low to sell high, sometimes we need to buy high to sell higher (such as breakout strategies). Now, there is one important topic here: if we don’t have clear S&R levels, where should we set the TP order? I use a 3:1 risk reward ratio and keep trailing my stop to secure some profits, it’s a little subjective, but its just impossible to determine where the market is going to bounce back (I don’t use Fibonacci, Elliot Waves, etc).
Tags: GBPAUD Analysis