Why? Because, the market for Gold has been quiet , so it is high probability that should the slanting line be broken, traders will react more strongly to it, simply because it has been quiet for too long (1 month?). It will either give me a quick decisive loss, or a strong start to a new move. The market is cyclical in this way, pretty much like how the waves retreat to attack the shore once again.
As a bonus, entering before the horizontal breaks gives me a more substantial position (i.e instead of 1 unit of gold, I can enter 2 units of gold), and still bear the same 1% risk. How? If you can answer this question correctly, I congratulate you. For then, you should already be a mature risk-management professional. Or you have been following and understanding my blog line by line.
Well, I just use the Dukascopy platform to keep track of prices and chart patterns. As you can see from my latest blog, my chart is a pretty simple setup. You do not really need a monitoring software. Just manage your risk, one small trade every now and then. Learn from your own experience. You can learn a lot from regular jousting with the market. To do that unencumbered by emotions, you risk small. Have a process of risking small.
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