manage to see a clearer picture of the candles movement. can be seen that price has been ranging between 0.500 and 0.382 of fib retracement line, starting on 03/03/2013. the previous supporting line i drew earlier still seems valid.
was looking at the chart on 05/03/2013, the support line seems strong... RSI below 50, MACD line below 0.00, Stochastic line is somewhere in the middle, so decided to go for long, since candle is on the support line, straight enter trade at 121.488, SL 121.00 below fib retracement line 0.382 (121.18). Target 0.500 Fib retracement, 121.956.
Went to sleep after that...
Woke up the next morning, somehow the price did not reach my target, but still strong on the support line. Thinking to leave the position on, but saw a doji candle formed. i immediately close position on the next candle. Profit 24.8pips.
Looking back, i'm not sure if i made a wise decision, closed trade after doji. Price did fall after doji candle by around 20pips, but went up again to touch the 0.500 fib retracement. The support line i drew earlier might not be valid anymore, since price has broken below the support line,unable to match with the fib retracement. If the 0.500 fib retracement is broken, the support line may become resistance line.
Looking back, i'm not sure if i made a wise decision, closed trade after doji. Price did fall after doji candle by around 20pips, but went up again to touch the 0.500 fib retracement. The support line i drew earlier might not be valid anymore, since price has broken below the support line,unable to match with the fib retracement. If the 0.500 fib retracement is broken, the support line may become resistance line.
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