EUR/GBP Long Set Up

22 ต.ค. 2017

Notes:

1. Choice one is to sell at open and target a move down to 0.89000, where price may decline lower or correct higher.

2. Choice two is to wait for a failed break of 0.89000 and go long, in line with the primary D1 trend and in anticipation of a longer term correction to the upside targeting 0.92500

3. The preference is choice 2, however a continuation down to 0.875000 must be kept in mind if a break lower occurs

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My Trading Rules - How I identify trades, define my edge and manage the commercials:

First I define my 'edge' which simply means a set of circumstances that indicate one eventuality is greater than another.

My Edge: (How I decide on if I should enter)

1) Is defined as trading in the direction of the overriding daily trend (Bullish, Bearish or Neutral)
2) In a trending marketing I look for entries at corrective price structure
3) In a neutral market I trade the upper and lower most extremes of the support and resistance levels
4) In the case of a breakout I seek an entry in the direction of the break

Next I follow 4 rules for undertaking analysis: (How I spot opportunities)

1) Analysis must clearly define a 'bias' and the parameters for invalidating 'bias'
2) Analysis must clearly provide a trade set-up with entry, take profit and stop loss
3) Analysis must debunk a trade in the opposite direction
4) Analysis must factor in sentiment and fundamental factors

So now I know my edge and how to spot opportunities the next is how to manage trades: (How I decide on the commercials of a trade)

1) Take profit should be set at a key fibonacci and/or price structure level
2) Stop loss should be no more than 3% per trade (sum of total positions)
3) Entry should feature 2 or more positions
4) Entry at market is forbidden to mitigate impulse trading (I only trade via orders)