News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
In a Downtrend, Sell a Rally

In a Downtrend, Sell a Rally

Richard Krivo, Trading Instructor

Instructor's Response:

Nice job...you nailed it!

This USDJPY pair is in a downtrend on the daily chart. So, the higher probability entry would be to wait for the pair to trade up to a resistance level (sell on a rally up to resistance) and then open a short position back in the direction of the trend with a stop above the resistance line.

Good work...

As a side note, in an uptrend we would do the opposite.  We would wait for the pair to pullback to a support level (buy on a dip down to support) and then open a long position back in the direction of the trend with a stop below the support line.

chart 12 22 09

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES