Our daily chart looks good right now. However, there was a lot of inter-day noise. A lot of people were stopped out today due to the huge price movements. See below at the 15 minute chart. Swing traders loved the volatility that this currency portrayed in the forex market today. However, it was very stressfull for a lot of people because there wasno inter-day trend. The swings were soo huge that a lot of people were stopped out.
Below is the daily chart. Notice there is another entry value i.e. Entry2. When NZDJPY went down, I increased my position size. Why you may ask? It is due to money management. Initially, when I enter a trade, I start with a small number of contracts. Once the trade becomes “free”, the size of the contracts are increased on the first pull back as long as the indicators are “healthy”.
Therefore, on the pull back today, I increased my position size. The stop for the new positions will be different from the “free trade”. I will be using the 8 hour timeframe for a stop instead of the daily (which is used for the free trade) until they become “free”.
For EDUCATIONAL USE. Commodity Futures Trading Commission, Forex, Futures, Equity and options trading has large potential rewards, but also large potential risk and may not be suitable for everyone. You must be aware of the risks and be willing to accept them in order to invest in these markets. Do not trade with money you can not afford to lose. This is neither a solicitation nor an offer to Buy/Sell. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this document. The past performance of any trading system or methodology is not necessarily indicative of future results. All information provide d on the Blog is for educational purpose .