[fxThunder]

Long GU at the breakout line

Cheers,
eNQ

[motion100]

EU long entry on the break of overnight (asia) level. Of course could switch it for a short entry (red line) with blue line as a stop.

Out of interest what are people's views on the current EU?

regards

Steve

[Marko23]

EU still short

[Marko23]

EU at break even

[Marko23]

Stop lowered

[Marko23]

Stopped

[thalestrader]

Originally Posted by EminiNQtrader »

Long GU at the breakout line

Cheers,
eNQ

Nice trade, EmNQ ... here is how it looked to me before and after ...


Best Wishes,

Thales

[thalestrader]

Originally Posted by motion100 »

EU long entry on the break of overnight (asia) level. Of course could switch it for a short entry (red line) with blue line as a stop.

Out of interest what are people's views on the current EU?

regards

Steve

Hi Steve,

Thanks for sharing your chart with us. If I may make a comment: Your long entry was a bit early, in my opinion. Price, you see, was in a chop zone. When dealing with price inside a chop zone, consolidation, wedge, etc, take your cues from the last real high and low that bounds that zone for a break. I think this is the biggest reason that most folks wrongly believe that "most breakouts fail" or that ne shouldn't trade breakouts because most of them are "false." I am not the only one who has found that quite the oppositie is true - most breakouts allow for at least a breakeven if not a small profit, and of course the occassional large run. Breakouts are a high probability trade, but you have to trade a break of a significant level, and not, as daedalus mentioned yesterday, a break withn a zone of many layered stops, i.e. a chop zone.

You can trade within a chop zone, but you should be loking to sell against the upper level and buy against the lower level if price gives an indication that that level is going to hold. After all, if that level holds, what is it going to do? Well, it wants out of the chop zone, so if support hols, it will likely try to escape through resistance. If resistance then holds, it will try again to break support. Now this would not have worked well yesterday and price basically went into a narrowing coil all day without ever really testing the upper level of the chop zone, and floating stubbornly along the lower level. The fact that it established its resting place in the lower half of the range should have been a clue as to which level price (i.e. the market) thought would be easiest to break.

I have attached a chart that shows the levels I noted yesterday, and how they look this morning.

As far as anyone's current views on the EURUSD, all you need is a chart.

Best Wishes,

Thales