Should We Or Should We Not Take This Trade?

Hunny Gee · May 23, 2012

Forex trading strategies – Should we or should we not take this trade?

Today’s post is one of the forex trading questions that i got over the weekend which i thought would be helpful to share

Question:

I spotted a pin bar pointing down with the 150ema supporting the

cadjpy. The daily chart seem to be heading down but the weekly chart seem to be going

up. In these case, is it safe to sell as the day seems to be heading down

although the weekly still seems to be pointing up?

My Reply:

No, when i trade the daily forex chart, i will make sure the daily and the weekly are

in the same side of the trend.

Although its a price action pin bar off the 150, but the pin bar looks too small to

take away the strength of the uptrend. I may be wrong on this, but given the

small pin and the weekly uptrend. i will skip this trade.

Forex Trading Strategies – Here’s the recent Forex chart update on CadJpy

Follow up:

True enough, the price action pin bar failed to take price down and its stoploss was triggered. Had we placed our stoploss at the top of the pin, we would have gotten stop out.

Take away Tip:

Pin bars happen & form all the time, it is by picking the right ones to trade in. There are several criterias which we use to call for a good trade and that is taught in our Winning Asia Forex Mentor Price Action Forex Course.

Ezekiel Chew

Asia's #1 Forex Mentor