Why do you really enter into a trade?

i just shorted eur/usd because it is at resistance on ichimoku monthly chart,daily chart, 4hour chart.

on 1 hour there are candlesticks showing sellers right now and a down fractal and the 1 minute is also showing a downward direction.

does this mean price will continue downwards from here ? Yes. How long ? Who knows. Just trail your stop when you can and place the appropiate stop loss and that's all.

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If I was following a car down the freeway and they were in the center lane out of 5 lanes... the probablility of him taking the next exit is very slim. So I know I can keep following him. If the car was to make an sudden move across several lanes to take the exit, then I would to while at the same time making sure I could cross all the lanes safely.

If I wasn't able to catch the exit in time then I lost the car ( or the trade). No big deal. I'll find another car to follow on the freeway. Maybe i'll follow the one in the far left lane (US has most exits on the right). Their probablility of exiting is very slim. When they start to make a lane change are they exiting or just changing lanes. ? I don't know. I'll just follow the car as long as I can.

/r/Forex Thread