Why you should always wait for the break of trend

Hi Guys this is a quick lesson from today's live chart USDZAR. Most people are looking to short the Dollar today so in today's trading Room I looked at this particular chart and advised that you only open a trade once price has pushed lower and given a short trade set up. You'll see from the chart that it was tempting to open a short on a fib retracement and you'll also see the reason why it was a bad idea.

I'll update this lesson as price develops

Steve Nixon
Trainer & Mentor @logicfxtrading.com

Commento:

Here is the same scenario on the GBPZAR. Yet again I suggested we wait for a pullback and set up before getting involved (if at all)

Commento:

The above chart was drawn before the spike

Commento:

As predicted