Patience

Today, I share this probable bearish pattern on Kiwi dollar. see the chart below.

I suggest put attention to the yellow zone, because this is a Potential reverzal zone PRZ. I not have planned enter long at this time, because the risk reward isn't favorable to me. I only trade when have a favorable risk reward to my side. Patience is the key to be successful in my opinion. I never try to predict the markets... for me is impossible to do. Have a great day!

Why I short Eur/Usd?

I find this pattern and the time is near to trade it, obviously short. See the chart Below.

Why I entry short? Because at this time many novice traders try to follow the trend because they identify a break out upside. But the main reason is: I identify a oportunity and take it.

I show you my entry criteria in the chart below. 1hr. Is a good level for me to entry.

How you know if this can be works Octavio? Honestly... I don't know if this works, but I face a oportunity with low risk and probability to my side. So, I trade it following my strategy. I not have problems if this not works and simply, I pull the trigger.

Long, short, sideways...

Of course, is valid if you stay long or short in any pair and obtain income or success; all depends in the time frame you trade: In the chart below I illustrate 3 long trades in Aud/Usd, two winning and one lose trade.

 I enter a long position inside the green zones, maybe not was a big win, or in some cases just obtain break even trades. That is ok.

 In the chart above, we can see a green circle, just here, we enter long again because, a harmonic number appears and looks good, time after we see another opportunity; harmonic pattern, but this not works this time and is ok. But, how you win if the trend is bearish? I never follow the trend my friend… But of course, go short is a good idea, but depends what time frame you trade. See the chart below.

 Is a Daily chart… and the others were 1hr and 4hrs. What is the trend? Long, short, sideways, doesn’t matter if your follow your plan and make a proper analysis in a specific time frame. We can win some pips in the 1 hr chart goes long or going short in a daily chart analysis. I hope this was helpful.

Experience...

I take this trade today Eur/Jpy, and this is working. Trading is not a perfect thing, so I ever draw two lines (green lines in the chart below). That is my Potential Reversal Zone (PRZ) In this case is a Demand zone. I ever take under consideration enter inside of that lines I was draw and put my stop 20 or 30 pips out of that zone. Today the zone works pretty well. Of course nothing is for sure; nobody can know or predict the future.

I expect 111.00 first target and 112.00, second target. I not have problem if my limit not be hit, I focused in moving my stop loss or get out when the market turns and show me signals to get out of that trade. How you know that Octavio? Experience is my answer