Hello guys!! Bottle here. Wants to share something thats quite effective and useful with all of u guys out there who have been following up this blog =D
For some info on the above image. Its EUR/USD pair in 1H time frame. Between 10th to 11th Nov 2009.
Ok, like the title says, scalping at a "Psychology" resistant level of 1.5000. As we have previously saw in Black's post regarding the Psychology effects of double zeroes, the above scenario is one such example. To add weight to the above theory, 1.5000 is considered a very high price i suppose?
Well yes it still involve some risk by just putting a Sell Limit @ 1.5000. To minimize the risk, i use my indicators to help me double confirm if indeed, that a bounce from 1.5 is coming. Like my Stochastic. EMAs.
From the image we can see some fat juicy(Black's favourite) white candlestick. Realize that each bounce can reach a minimum of 30pips and maximum of 80 pips? Thats alot to achieve in an hour or so. Ytd night i reaped 40pips from it. Short @ 1.5000 and TP @ 1.4960.
But do take note of the Fundamental side of this. I tried doing it in "No news" timing so what effects they can bring is not known yet.*(at least to me) And also do have the patience to wait for it to retrace up, sometimes it happen to go above 1.5000 yea? This way ur risk can be lowered and profit maximised yea??
Bottle can do it! U CAN DO IT! Ok thats all folks hope it helps!
Being defeated is often a temporary condition. Giving up is what makes it permanent.