It was a good decision to close off the trade first and waited for FOMC. At least I still got a decent 83pips profit. If price remained at this level, market might go into tight consolidation again or the chances of price going down should be higher than going up.
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| AUDUSD 2010-08-09 Follow up (Trade Closed) |
2 comments:
Yesterday, when you did this trade, major trend was UP and intermediate trend was up too (both can be seen on Daily chart). Only Intra-day trend (4H) seems to be down. Therefore, I think trying to short when the higher forces have yet to show a turn down is a high-risk trade. A better pair to trade yesterday would be GBP/USD. What do you think?
Hi Josh,
Trend is like a big vessel, when it needs to turn, it would have to do it slowly.
From technical perspective, the lower time frame would turn first before the higher time frame shows a confirmation.
Agree that GBPUSD was a better pair, but I went into AUDUSD first, so kind of "stuck"
Cheers,
Eric
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