Consequences

by Eko Prasetyo @ 8:26 AM My speculative move ( see previous entry) yielded me profit on the LONG position but gives me potential DISASTER on the short position. As you can see inside the purple curve, I took a LONG position and SHORT position at the same time, hoping that the market will go both ways. I had a potency of +100 pips on LONG target, but I set my target at +40 pips and therefore losing +60 pips potency (poor me). My SHORT position, on the other hand, has been giving me loss of more than -100 pips (-176 pips when the market stopped for the weekend). I am currently holding this position open, because GBP has been known to rise and drop drastically these past few weeks (and because I'll be losing 2000 virtual US$ if I closed it right now ) So, what to learn from this little experiment? Well, I can tell you this: I failed to notice the upward trend that has been going on just hours before I took the double edged positions last night. It should be apparent for me that from 1 p.m (+7 GMT) yesterday, the GBP/USD has been moving on an upward trend. If you took a straight line that connects the closing position of 1 p.m and the the closing position of the positions I took, you'll get an ascending line. That one should still be enough for me to see that the market is BULLISH in those hours. What still I can't see is the wa the market rocketed during those last hours of this weekend market session. When I read the forex news available on Marketiva client software's news tab, I saw the fact that US Consumer Price Inflation is somehow dissappointing. I think my ignorance of fundamental analysists caused me to miss the latest financial news. It is important to have fundamental analysists because the fundamental conditions of markets can dictate the forex market in great way, more than trends and momentums. But unfortunately, fundamental analysists are time consuming...something that I can't afford right now, not yet. Right now, all I can tell is: when a fundamental market news is about to come out, search it out quickly !! Maybe in the future, when I already get a firm grasp on technical analysists. Speaking on technical analysists, I analyze that the latest GBP/USD BULLISH condition will hold, despite the latest drop on the hourly basis, cause in daily basis, both slow and fast stochastics met last time on a BULLISH indication, and have not met on BEARISH indication yet. RSI and MACD confirmed that too. But Long Period Moving Averages swing to indicate that the BULLISH condition will not hold long. Double the range between today and the day Short Period MAs and Long Period MAs meet, and you'll have the day when GBP/USD goes BEARISH. Just correct me if I'm wrong | My Diary | Join Marketiva| |