Looking back from last week analysis, the Dow Jones Index indeed came down.
For those who shorted at the top had made quite a lot for the small risk they need to take.
Friday there was profit taking before the end of the week, which you should too to keep some profit.
Next movement will still see some likely move down due to war risk between N.Korea and US.
Forex trading will be slightly more difficult unless you had shorted xxx/JPY pairs.
For me looking at this pair seems to still have some long opportunities.
For those who didn’t know what XAU means, it means gold.
Gold has certainly rebounded at slightly above 1250. for those who believed on the gold bull certainly was rewarded.
Would be reaching a resistance point soon, so those would like to take some profit.
The Trick to Earn Good Risk Reward
I found there’s a small little trick to earning a good risk reward, this could be what most profitable traders are using.
First, you need to determine a trending or momentum using longer time frame like 4h or daily.
Then, look for corrections or breaks and use the smaller time frames like 15 min to look for rejection prices.
The smaller time frame will allow smaller stop loss which will increase your risk reward ratio when you ride on trend.
Of course, this is not the only trick to profit. Trading is dynamic, and there are other few tricks to employ.
However, you DO NEED to have good knowledge of where are the places of resistance and support.
These are the basics of technical analysis.
Don’t bother with using MACD, Stochastics, or other complicated technical tools. They don’t work.