Friday, November 29, 2013

Trend v support and resistance

You will never know which will win the day, trend or support and resistance.

If you were to buy here around 1.4960 fine but just be fully aware of what you are up against:

  • Yesterday we failed to go higher closing as a hanging man,
  • Its Friday pm and there's more than a few traders that avoid Fridays all together,
  • 1.4960 is in and around yesterdays high,
  • The run up is now 950 pips,
  • We are in a major resistance area from August.
Due to the aforementioned reasons I believe this is not the time or place to be putting 40 or 50 hard won pips at risk. If you haven't made some money after a 950 pip trend move leaving a trade exposed right at the end of a massive run, trading into the major resistance level is not the place to start.

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