The Way of Investment (Part 7)

The Way of Investment (Part7)

1      Next, we will examine the declines in the three-book currency pairs during the diffusion period.3

From2020 year11月to2021年間3月頃の拡散期における、本の下降通貨ペアそれぞれを見て行きましょう。

1.      EURAUDSell2020年11月3日〜2021年1月21日

The chart is the EURAUD daily chart. The lower half shows the "8 CP Visualization Indicator," with the red thick line corresponding to EURAUD.EURAUD’s chart has spread downward, so we enter a sell onEURAUD (red arrow). We close the position at the point where the chart levels horizontally (yellow arrow).

On the day of the sale, a long bearish candlestick appeared, and the drawdown was zero. Profit range860PIPS, while the stop loss was340PIPS, with a risk-reward ratio of—the "classic trade."

2      GBPAUDSell2020年11月3日〜2021年1月11日

The chart is GBPAUD daily chart. The lower half shows the "8 CP Visualization Indicator," with the orange thick line corresponding to GBPAUD.GBPAUD’s chart has spread downward, so we enter a sell onGBPAUD (red arrow). We close the position at the point where the chart levels horizontally (yellow arrow).

The drawdown is relatively small, about60PIPS. Profit range750PIPS, while the stop loss was230PIPS, with a risk-reward ratio of.

3      AUDNZDSell2020年11月16日〜2020年12月3日

The chart is AUDNZD daily chart. The lower half shows the "8 CP Visualization Indicator," with the yellow thick line corresponding to AUDNZD.AUDNZD’s chart has spread downward, so we enter a sell onAUDNZD (red arrow). We close the position at the point where the chart levels horizontally (yellow arrow).

In this case, the downward movement of the chart itself is small and reverses quickly to rise, so the profit range is also small. Moreover, the risk-reward ratio is0.84 and or less, so it might be better not to trade. Still, we have captured a daily downtrend and earned130PIPS. You could draw a descending trendline and add a rule to close the position when it touches or breaks above.