Many of us who took the more aggressive opportunity to sell the USDDKK trade idea (as per our email on the 24th) by placing a sell order on the way of the aforementioned sell level (unbroken of resistance 5.8460
After all, price has been unable to break this level since November 2012, giving us a good probability that it will continue to hold
But yesterday a bearish pin bar reversal closed on the daily, giving an opportunity to the more conservative trader to trade this short. This pin bar is also supported by bearish RSI and Stochastic divergence (on the daily), indicating an underlying weakness with the buyers Vs the sellers.
Even though we do not (yet) have a reversal on the hourly to support this further, this could occur today.
The more conservative traders will simply place a sell order below the low of Thursday’s bearish pin bar reversal with a stoploss above the high (plus spread and an additional spread) , in anticipation of price breaking yesterday’s low.
While nothing is ever guaranteed in trading, the fact that this is strong level (unbroken since November 2012) which price has sharply rejected on two previous occasions AND we how have this additional price action based reversal signal, gives this trade idea a good degree of probability.
_20140926074805.jpg "USDDKK Daily")
After all, price has been unable to break this level since November 2012, giving us a good probability that it will continue to hold
But yesterday a bearish pin bar reversal closed on the daily, giving an opportunity to the more conservative trader to trade this short. This pin bar is also supported by bearish RSI and Stochastic divergence (on the daily), indicating an underlying weakness with the buyers Vs the sellers.
Even though we do not (yet) have a reversal on the hourly to support this further, this could occur today.
The more conservative traders will simply place a sell order below the low of Thursday’s bearish pin bar reversal with a stoploss above the high (plus spread and an additional spread) , in anticipation of price breaking yesterday’s low.
While nothing is ever guaranteed in trading, the fact that this is strong level (unbroken since November 2012) which price has sharply rejected on two previous occasions AND we how have this additional price action based reversal signal, gives this trade idea a good degree of probability.
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