SR/SD and the PA that describes it

[GoldenFinger]

basically it is just pa reading, i don't have any holy grail, ej is currently on a uptrend, so the best way is to trade with the trend, not fade it, the only obstacle is the previous resistance , which i said is 60 pips away.
At this area is where current long likely to tp and new short coming in, but it is just one possibility, so i would rather stay with the trend. As u can probably see now, it did reverse, but can it be a new downtrend or is it just a retracement before it continue, no body can tell, we will have to adapt and see how the chart mutate. i hope u see what i mean.

regards

[simond]

the best way is to trade with the trend, not fade it,

There's no mention of fading* in my original post, in fact, quite the opposite. And that's because I agree with you that it's best to trade with "trend" or "direction" as I refer to it.

If you recall, I made the remark that I wouldn't look to short that pair at that particular point because although all of the primary signals for commencement of a reversal were there; new swing high, fresh supply coming in, decent looking PA, there was still strong support beneath current price in the form of a bull-flag. In other words "direction" or "trend" was still intact.

Given those bearish signals, however, if price had pushed down lower from that fresh supply and closed below the bull-flag I would have considered the probability that "direction" was changing, was high enough to start looking for a short. But that didn't happen so I sat on the fence.

* I'll make another post about fading

[simond]

Fading

There's only certain times and criteria, I'm absolutely comfortable to fade moves. For the most part it's about prevailing conditions (obviously) and of course, risk. Main thing for me here fading this particular pair is that there's no discernible support in the region.

This current short is circa 40 pips risk on a separate swing account. I don't recommend anyone taking this short.

If I get some bearish PA coming in later I'll add to it. If the stop is hit, so be it - the risk is adjusted against profits on yesterday's USDCHF short scalp in the second chart below.

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USDCHFH4.png