Student’s Question:
Is this a entry of Sell order? Or we need to wait for a few more days confirmation?
Eur/Usa 23/3/09 - I base on :
1) Candle from out of BB (3 and 4 days ago) to yesterday and today closed at inside of BB
2) RSI from 74.9 dn to 70
3) candle is hanging man today
Is it Ok if we enter a sell order and stop at 1.735 ?
Power Course Instructor’s Response:
You make some good observations...
Oftentimes when I want to "sharpen" my view on a trade, I will consult a lower time frame chart...in this case, a 4 hour chart. (See the chart below)
Based on this 4 hour chart below, a trader would wait for a candle to close below Support 1 (more aggressive) or Support 2 (less aggressive). In either case, the stop would be above resistance in the 1.3750 area.
Also, take note of the example of a hanging man candle below.
