Currency Trades made last night

I made 2 trades last night that are currently in negative territory.  Both trades were based on overbought/oversold indicators using MACD, Stochastic, and RSI.  I also based my trades on support and resistance lines.  I’m sticking with these trades and setting wider stops than usual.  Read more to view my trades.

 As you have probably noticed, I’m down substantially in both.  I can only guess that I would be up many pips if I went contrary to what I thought.  Could this be the contrarian theory?  I don’t know much about the contrarian theory but I’m reading about it after a visitor to this site mentioned it.  I find it interesting how psychology really plays a role in the stock market, forex market, and any other financial market. 

I was reading a study last night regarding sentiment indicators.  Momentum indicators were being compared to sentiment indicators from many different financial media outlets.  The financial articles or reports would be read and classified as bearish or bullish.  In comparing the technical momentum indicators and indicators from the press, they were strikingly similar.  So though psychology has it’s place in financial markets, there are technical indicators to try to gauge that psychology.

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