Hi Guys, hope all of you are having a great weekend. I am expecting the GBPUSD to make one more impulse down, but the question is, is the correction over? I guess next week we will all know. Maybe one more move up before the down impulse.
@MarkSterensohn, the term, trend, is not really an absolute term, especially how it is used by most people in the trading community. You've said that AUDUSD has a worst trend, so I wonder if there are degrees to a trend or rather there is a trend or not.
I am looking at the AUDUSD chart on the 4H timeframe and in 48 bars, i.e. 192 hours, Australian Dollar has declined around 444 pips or 5.72%. USDCAD on the other hand, made a recent high on the 14th at around 1.3588 and since then, in 24 bars has gain against the US Dollar by 91 pips or 0.67% The exact same comparison can be made on the daily and weekly charts. From what I can see on the charts, at least on the larger time-frames prices don't seem to be in a trend at all. In fact, AUDUSD has been in a sideways move on the daily time-frame since the start of the year. Similarly for USDCAD, which also has been in a sideways move from around May 2016.
So I guess the more important question would be, how does Forex Finviz describe a trend.
As far your trade is concerned and leaving aside their flimsy system of attributing a subjective value to a trend, AUD is losing against the USD, whereas CAD pretty much sideways against the USD so naturally AUD would lose value against the CAD as well since. Similarly for CADJPY, CAD is pretty much flat whereas, the JPY has moved considerably, 960 pips, 9.5% in around nine days to be exact. So basically from what I see, neither of the price changes were as a result of CAD which was supposedly having a stronger trend than AUD or maybe even JPY.
One very very important note, longer time-frames, though, are crucial for developing a directional bias but if your trade ideas, i.e. entry, stop-loss, take-profit and risk-management are based on the weekly time-frame, one trade idea would take several months to pan out if not years and you should have at least a couple million dollars to make decent amount of money while risking a reasonable sum relative to your overall equity.
ubersorg
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How do you identify a bounce or a break clearly, can someone pls link me a good article or anything? that would be great! I'm still trading on demo, learning phase.
DennisPTran07
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@ubersorg, Some people look for reversal signs and others just wait to make sure its a bounce or a breakout :)
triptihtrader38
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Beauty of understanding.
SandroCaro17
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what the heck happened here lol
cpozzer
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ok, so it broke out sideways, and it seems to be wanting to go down now...hope not.