[SOLVED] ✓ How to prevent confusion while on the markets.

[SOLVED] ✓ How to prevent confusion while on the markets.

29 December 2019, 09:45
Yohana Parmi
0
102

Hello traders,
Greetings.

At the end of this week, before and after Christmas and towards the new year 2020,
-- I see many real accounts that are still experiencing minus floating at the end of this week.
-- At least the last time I saw them was on Friday Dec 27, 2019 after the market closed.

  • Even though all of you copy their positions, and experience the same thing
    -- don't just blame them without looking at the actual market conditions at the time.

  • Why is that?
    Because at that time, the market was confusing traders.

  • ohh wait, fortunately some of them get profit too :)
    Because they use the right instruments, and understand the situation.
    -- although they were actually -- somewhat confused -- but they obeyed "the cockpit instruments on their plane" through the chart.

     Example: the situation when markets confuse traders -- December 20, 24 and 26-27, 2019.    

  1. On Friday - Dec. 20, 2019
    Current situation on chart is look like this :


    Fundamental :
    Talk about the impeachment of a president in a great country is getting stronger.
    Many traders think that USD will weaken, -- so they chose to take a Buy position for EURUSD because of that.
    -- and also EURUSD was seen rising from the support level. 


    But, likely some of them forgot that the market give us best trade opportunity is at the first time price hits actual SR.
    The 2nd or more hits have breakouts risk. I provided many explanations about it, one of them at   https://www.mql5.com/en/blogs/post/726682#comment_11756929
     
    This is situation EURUSD on chart at that time :



    3 hours later ... breakdown started up.
    then EURUSD goes down, break through the support line after the 3rd test.



    At that time, the market is confusing people again.
    They began to think about carry trades, about USD interest rates greater than the Euro.
    .. to think maybe the market wants to save Dollars against the Euros on Christmas holidays
    to get interest swaps until the new year 2020.

    On that situation, the market seems to invite people to think they have to sell EURUSD.

  2. On Tuesday - Dec. 24, 2019
    Current situation on chart is look like this :



    Carry trade looks like begins.
    Finally, the market managed to convince some people to believe that the EURUSD will go down throughout the holidays until the new year.
    -- Some people think that they should sell EURUSD on the thought of carry trade.

    Some others are still confused about how the USD,
    -- which will be more dominant in the market between the issue of impeachment or a long year-end holiday on carry trade technique
    Some tools on their technical asked people to sell EURUSD.

  3. On Thursday and Friday- Dec. 26-27, 2019
    Some people are surprised by reality.
    -- Even the EURUSD is getting higher and higher, until the price hits the peak of resistance that close to Avg. Daily Jump. (ADJ)







  4. Before that happens, what efforts have I made to remind many people?

    a. Take the time to write an article :
    --- SR Strategy - TO FIND OUT WHERE THE MARKET GIVES US THE BEST OPPORTUNITY TO OPEN NEW POSITIONS.

    b. Prepare a trade plan Buy position for EURUSD at next 1st hits support here.
    --- Remember, this trade plan was made before the price rose to 1.11850 at the weekend, today.



  5. The question.
    Why should we prepare a buy position on EURUSD?
    -- How do you know ?
    -- Previously, this trade plan was created here:  https://www.mql5.com/en/blogs/post/732174#comment_14314902

    a. Because of this :
    --- before that happens, A2SR sent a notification about Strong Breakout.



    Note :
    Scalper plays in the Resistance area, which is closest to ADJ.
    The description is here : https://www.mql5.com/en/blogs/post/726682


    b. Highly supported by Trading Planner, a better way to determine position.
    --- Creating a trade plan on EURUSD.
    --- Found support level before receiving alert Strong Breakout from A2SR.




Thank you for reading.
Let's welcome 2020 in a better way.
-- start : make some practice with leading indicators.
we wish you all the best

--- Happy New Year 2020 ---


Share it with friends: