Unless you’ve been hiding in a cave, you havent seen how the JPY crosses have been moving in the last few weeks.
Yesterday a fellow trader asked me what my thoughts were about those moves, and if I thought there was still a chance to go long, you know, the market might retrace, etc.
That reminded me something I read somewhere (cant remember where):
The market is never too high to stop looking for a buy, or too low to stop looking for a short.
Ever since I read it, it made total sense to me, and I adopted it almost as my motto…
So don’t be afraid to get caught in a retracement, because you are going to miss the whole move. I rather get caught in a retracement than watching those kinds of moves on the sidelines…
What are your thoughts about this?
Look, it all comes to this: finding the right opportunities to trade today, with the lowest amount of risk.
So you need to trade based on what you are seeing, not based on what you think the market will do.
Agree with me?
NZDUSD trade opportunity
A few days ago the NZDUSD broke through an important long term resistance level, here is the daily chart and how it broke through the resistance level:
Ok, so we know the NZDUSD is likely to continue its way up until it reaches the next resistance level…
Ok, thats it! You are good to go, lets go home… huh? What?
Ahhh you are right… No analysis is complete until we determine where to get out of the trade…
To do that, we need to take a look at the weekly chart, here is the chart:
You see the upper orange level, that’s my next resistance level and where I think the market is likely to go.
So if you find an opportunity to go long, set your TP levels just below that resistance level.
What do you think about the NZDUSD trade opportunity?
Do you ever stop buying or shorting because you might get caught in a retracement?
Leave your comments.