Whenever you are looking at a technical level, always ask yourself the following:
- Am I buying at a potential bargain/wholesale/discount price? (supply or demand zones) - Why is there more likely to be more supply/demand orders at that area? (new traders entering/traders taking profit at horizontal, diagonal & dynamic support/resistance areas) - What are the underlying fundamental/sentiment drivers that should push price in my favour? (interest rates, business cycle, risk on/risk off)
If all 3 are in your favour, take the trade, manage your risk and go for more than you've risked.
Always remember this trade is only 1 trade in the next thousand you're going to take.
AUDJPY had very strong down week going thru the daily demand zone with ease, now approaching Sep 2016 weekly demand zone of approx 77.50 to 76. It closed the week at 78.17. We'll see how it reacts to this old zone if it gets there.
howard95
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So glad I found you Leon. Supply and demand trading together with considering fundamentals & sentiment makes so much sense, & is interesting & fun. I'm enjoying the process and my results have greatly improved.
Thank you for sharing. Love your work!