Newbie Question

[nevets24]

If a currency pair breaks support on a hour chart and has a long bearish candle And on different time frames it has broken major support in this case what is a good PROBABILITY what will the pair do??? Will it channel and form another form of support Or should a trader anticipate a bounce? Or will it test a monthly or a previous low??? What did some of you experiance traders do??? And how would you trade this???

 

[fxmonk]

If a currency pair breaks support on a hour chart and has a long bearish candle And on different time frames it has broken major support in this case what is a good PROBABILITY what will the pair do??? Will it channel and form another form of support Or should a trader anticipate a bounce? Or will it test a monthly or a previous low??? What did some of you experiance traders do??? And how would you trade this???

Nevets, no offense because your new, but what you are asking is impossible to answer. You see, price is a lot more random then what our technical analysis tools seem to be able to predict. So take one step at a time: instead of asking what series of behaviors will price have after doing X, ask: "Is price likely to go up or down based on the behavior I just observed and typically how much?" That's your edge. Does that make sense?

Kris

 

[nevets24]

Yes that makes makes sense. I just want to know the probabilities are, and what have some experianced traders will do in this case.. I know price cannot contiue to go down, and the market repeats moves, such as price patterns. I just want to know if a seasoned trader seen Euro/Cad break major support, and get to there desk what will there trading plan be for that particular pair. I am using euor/cad as a example by the way. But it did take a dive about a week or two ago