Gaining an Edge over the Forex game of Mind, Money, & Wealth
Saturday, January 06, 2007
Monthly Reverse Fractals
Classic Monthly Reversal patterns in progess for Euro & GBP from the December 1.3364 & 1.9846 highs after this week's rejection from secondary highs..
historically, the odds are against Euro & GBP making new highs after Monthly rejections above 1.30 & 1.92..
Euro 1.3364->1.2981->1.3001
GBP 1.9846->1.9264->1.9290
Trading is not an exact science contrary to the popular belief of most new or inexperience traders.. In trading, we must allow for some margin of errors within our defined risk & trading time frame.. allowing for this margin of error under the constraint of trading in micro time frames with stops & profit targets all inside a small fluctuating market noise band in hope of achieving consistent profits over time is very difficult, if not impossible.. as whenever we are right, we are only small right within the confine of the small P/L band which limit our odds to playing for break even at best over time.. Trading longer time frames allows for a wider margin of error but at the expenses of increased risk.. however, the odds of being right & achieving consistent profits over time are enhanced when good market analytics & trade management strategies are applied under the proper market bias.. When we are right, we need to ensure that we are bigger right over an expanded profit band inorder to compensate for those times when we are wrong..
historically, the odds are against Euro & GBP making new highs after Monthly rejections above 1.30 & 1.92..
Euro 1.3364->1.2981->1.3001
GBP 1.9846->1.9264->1.9290
Labels: Euro
Trading is not an exact science contrary to the popular belief of most new or inexperience traders.. In trading, we must allow for some margin of errors within our defined risk & trading time frame.. allowing for this margin of error under the constraint of trading in micro time frames with stops & profit targets all inside a small fluctuating market noise band in hope of achieving consistent profits over time is very difficult, if not impossible.. as whenever we are right, we are only small right within the confine of the small P/L band which limit our odds to playing for break even at best over time.. Trading longer time frames allows for a wider margin of error but at the expenses of increased risk.. however, the odds of being right & achieving consistent profits over time are enhanced when good market analytics & trade management strategies are applied under the proper market bias.. When we are right, we need to ensure that we are bigger right over an expanded profit band inorder to compensate for those times when we are wrong..
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