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- Tuesday, 06 October 2009 08:57:14 GMT The Trend of the Day - GBP/USD
- Tuesday, 29 September 2009 11:59:09 GMT The Trend of the Day - AUD/USD
- Tuesday, 22 September 2009 08:58:39 GMT Post of the Day: Risk Reward Ratios
- Thursday, 17 September 2009 18:49:26 GMT The Trend of the Day - EUR/USD
- Thursday, 17 September 2009 11:33:00 GMT The Trend of the Day - GBP/JPY
- Thursday, 17 September 2009 08:59:57 GMT Post of the Day: Determining a Price Target for Triangles
- Wednesday, 16 September 2009 12:10:21 GMT Trend of the Day - NZD/USD
- Tuesday, 15 September 2009 11:53:03 GMT The Trend of the Day - EUR/JPY
- Monday, 14 September 2009 09:39:08 GMT The Trend of the Day - NZD/USD
- Friday, 11 September 2009 10:13:14 GMT Trend of the Day - GBP/USD
- Friday, 11 September 2009 10:13:14 GMT Post of the Day: Identifying an Entry
- Thursday, 10 September 2009 11:25:08 GMT The Trend of the Day - EUR/USD
- Wednesday, 02 September 2009 12:25:55 GMT Trend of the Day - GBP/USD
- Wednesday, 02 September 2009 08:44:39 GMT Post of the Day: Controling Greed
- Tuesday, 01 September 2009 10:07:53 GMT Trend of the Day - CAD/JPY
- Tuesday, 01 September 2009 08:29:44 GMT Post of the Day: Hanging Man Candlestick
- Thursday, 27 August 2009 04:10:19 GMT Post of the Day: Professional Traders vs The Amateur Trader
- Wednesday, 26 August 2009 11:45:00 GMT Trend of the Day - EUR/GBP
- Wednesday, 26 August 2009 04:36:38 GMT Post of the Day: Wicked Candles
- Tuesday, 25 August 2009 04:07:15 GMT Post of the Day: Candlestick Identification
Student’s Question:
In the chart below I've decided to go long on AUD/USD. Todays candle wick is just penetration the lower bollinger band. I will wait to see if tomorrows candle confirms the reversal and moves up. I'll place a stop just below the bottom of today’s wick.
Power Course Instructor’s Response:
While I can see your rationale, keep in mind that the primary tool in determining the direction to take a trade is the overall trend on the Daily chart.
Taking a look at the Daily chart below, the prevailing trend is still to the downside. There has been a strong retracement recently but that trendline has been broken.
While what you indicate could occur, at this point, the higher probability trades will be opportunities to short the pair.
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