I’ve put off asking you about this, but I can’t stand not to any longer.
Can you look at a Yearly chart of the NZD/USD Forex pair for me? Do you see any reason why one would not take the Long against the yearly 5/9 that lies at 0.6090? I see a monthly 5/9 that has broken thus far (but not on close). This is hypothetically speaking, of course. J It almost looks as if a Monthly Dotted Line trade is setting up, with the Yearly 5/9 as the long entry. I may have interpreted this wrong, but it looks that way to me. Any input is appreciated. Also, the 0.6090 level is the bottom of the Yearly Nearby Support, probably based off of this 5/9 level – so I could see why potentially we might wait to see if the nearby breaks?
S.B.
Yearly 5/9
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Trader Question
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Yearly 5/9
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Re: Yearly 5/9
Yes, the trade has some potential.
You are stating with this hypothesis that the yearly lows are being put in.
But if this is true or no, there is a trade based on pldot refresh on the weekly, monthly, and quarterly basis.
You should be working out in your miond what the market will have to do and what it will look like in each of these scenrios as P&L targets are met or not met on each timeframe, from daily through querterly through yearly.
If you have not done do, you should be monitoring Charlie's new "mogs" at www.pldot.com/institute/charlie, especially Lessons 4-5 and Mogs 1-5 as he is dealing with a precisely similar scenario now unfolding in the S&P, as to if the yearly high is being put in on the S&P, or not, and how that looks, and how to trade it, etc etc. It is the mirror image of your suggested trade. The trick is to know what *has* to happen to be correct, and what *will* hapen if you are not correct. Then you can monitor effectively.
You are stating with this hypothesis that the yearly lows are being put in.
But if this is true or no, there is a trade based on pldot refresh on the weekly, monthly, and quarterly basis.
You should be working out in your miond what the market will have to do and what it will look like in each of these scenrios as P&L targets are met or not met on each timeframe, from daily through querterly through yearly.
If you have not done do, you should be monitoring Charlie's new "mogs" at www.pldot.com/institute/charlie, especially Lessons 4-5 and Mogs 1-5 as he is dealing with a precisely similar scenario now unfolding in the S&P, as to if the yearly high is being put in on the S&P, or not, and how that looks, and how to trade it, etc etc. It is the mirror image of your suggested trade. The trick is to know what *has* to happen to be correct, and what *will* hapen if you are not correct. Then you can monitor effectively.