Gaining confluences for confidence
We shall use Gold as our example
Entry 1468 SL 1465 (time 12:01 Tuesday 17th March)
Why did I recommend a long? What was the rationale there?
First of all you need to establish the RISK - where are you going to exit? Where better to exit than at monthly pivots / supports? Damage mitigation.
Remember you can use the Pivot Panel software for this as well...
It hit Monthly Support 2 at 1465 and rebounded, so I knew where to place my tight stop.
Technical reason 1:
On Balance Volume (OBV indicator) on H1
Note how the horizontal line acted as a support ?for a bounce higher?
Technical reason 2:
I waited patiently for M15 Heiken-ashi candle to turn colour
Sentimental reason 1:
Price was above the Average Short Price, so it fell back into its respectable range.
Note my entry was ABOVE 1468. Do you see why?
Since MS2 1465 the Stop was very small at $3.
At time of writing Gold is now 1511
I'd happily make a video but I can only capture one terminal...
If you wanted to see the FXCM trading station, I have a live feed running now...
Hope everything is clear?