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.

Free Trading Guides
EUR/USD
Bearish
GBP/USD
Mixed
USD/JPY
Bearish
Gold
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Bearish
More View more
Real Time News
  • Tomorrow's event risk include employment numbers out of Australia, German and Euro-Zone GDP Q3 readings, overnight rate decision from Banxico, and Fed Chair Powell will testify before the House Budget Committee $EUR $MXN $AUD $DXY https://t.co/2oJpJwij0q
  • DailyFX Sr. Currency Strategist @CVecchioFX is a long term macro trader. What is your #tradingstyle? Take the quiz and let us know in the comments! https://t.co/LPBOcS0Vtd https://t.co/GmxPPpX1Be
  • This tweet from last week is just as true today as it was then https://t.co/RPZp0xAF7C
  • $EURUSD Daily Pivot Points: S3: 1.0944 S2: 1.0981 S1: 1.0995 R1: 1.1031 R2: 1.1053 R3: 1.1089 https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • Forex Update: As of 21:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 1.28% 🇨🇭CHF: 0.31% 🇯🇵JPY: 0.18% 🇪🇺EUR: -0.02% 🇦🇺AUD: -0.05% 🇨🇦CAD: -0.16% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/DMbCFCWxda
  • The People's Bank of China said the country's crypto solution - 'digital Yuan' - should have ‘controllable anonymity’. I may be reaching here, but I don't expect strong global uptake from the crypto community...
  • Commodities Update: As of 21:00, these are your best and worst performers based on the London trading schedule: Silver: 1.06% Oil - US Crude: 0.50% Gold: 0.43% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/xdwa4LvTDp
  • The Eurozone Citi economic surprise index rises to -15.9 today from -57.3 on October 24th, reflecting improving economic data releases relative to consensus expectations. https://t.co/u15ZV7rNne
  • Crude #oil prices have continued their recovery as progress on the US-China trade war front has reduced concerns over global growth. Get your crude oil market update from @CVecchioFX here: https://t.co/Ic78Q6IlWm #OOTT https://t.co/89TAIkty5j
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.63%, while traders in France 40 are at opposite extremes with 85.42%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/ZdU3O8HxqL
Using Trendlines in Trading

Using Trendlines in Trading

2011-03-21 02:47:00
Richard Krivo, Trading Instructor
Share:

Student’s Question:

I think I may have made a blunder.I am looking at long EUR/GBP on the hourly chart base on the rising trendline channel (grey on the chart) and MACD cross.Price action is above the 200 period SMA with the stop below the trendline and candle wick.Problem is, prices have started to steadily move down since opening the position.Thank you for your support…

Using_Trendlines_in_Trading_body_EUR-GBP.png, Using Trendlines in Trading

Instructor’s Response:

Good job on drawing the trendline…

When using a trendline for entry, we want to enter the trade as close to the trendline as possible. It looks like your entry was a bit above the trendline and since it has moved up a ways already, it could likely be due for a retracement. Going forward when a situation like this presents itself again, wait until price action trades down to the trendline and then enter long should price not close below the trendline. This is the only tweak that I would have made on this. And, in the end, that tweak may not make a difference one way or the other.

Also, keep in mind that just because a position moves against you shortly after the entry does not mean that it is a bad entry or a bad trade. A trader never knows upon entry whether or not it will be a good trade…they cannot control that. They can only control how and when they enter along with the placement of their stops and limits. So long as they take higher probability trades in the right direction, they have done their job and then just let the market do what the market is going to do.

You are definitely trading this pair in the right direction…good job. Whether or not it turns out to be profitable, only time will tell.

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

DISCLOSURES

News & Analysis at your fingertips.