Good morning traders.
We had a 22 pip range most of the day through to 17.00 CET when I downed tools and then a rip up in later session trading. Overnight we pushed up to just under yesterdays R1 which I´m sure cleared our some aggressive shorts. We are now trading just shy of the 1.12 big fig and could get a trip above here to see how the land lies.
We had nothing to report for any trades re the model strategy and the price action was tough to scalp during the bulk of regular trading hours.
One question I get regularly is why stick with a pair if its not moving. Or put another way why limit yourself to any one pair or narrow range of instruments at all?
The answer for me is that I have tried trading more than a couple of instruments in the past and it doesn’t do it for me. I much prefer to get to know a pair and become an expert on that single item.
I know the prices at any time and can recall closes for the week and where the levels are at all times and can visualize the chart (in most time frames) in my head. If that sounds like a chore I suggest you get doing some homework because once you start to live and breathe your trading method and instrument it reduces doubt and or stress significantly. It simply becomes what you know and you do your job – you are in much more control because you´re on top of the situation at all times.
Try doing that for 5, 6 or more pairs. Some people can but I cant. And remember, to be successful you don’t need to be flying around trying to manage any number of charts, pairs and or instruments. Focus on one and I would almost guarantee you´ll be more profitable and successful.
(Transparency point here – I do actually trade the Dax as well – but 2 is my limit:))
Just thought I would mention this because in my view its a step towards major improvements in your trading. Don´t be a jack of all trades – be the master of 1, ( ok or 2 :).
We do have some data out for the EZ today in the form of flash GDP´s for France, Spain and Italy and CPIs for Germany which should inject a little life into things. It’s also the last trading day of the month with FOMC tomorrow and NFP on Friday so we could get some balancing / positioning moves into the events.
The Daily Chart
From the daily we can see what looks like a bottom pattern forming with the half back push (50% Fib) coming in around the 1.1220s which I´ve set as R1 for today (see below). Its also at the month open level.
The Hour Chart
Levels as per.
We have some significant levels in play at the moment. We have cleared through the 1.1175 major low overnight which may act as support during today and will be a test of conviction for longs. S1 is a decent level just below based on structure.
Above we have the 1.13 big fig which will be important for longs to crack before next resistance coming in at the 1.1220s.
As we are closing out the month and have some event risk in the next few days I would recommend you stay fleet of foot and quick to manage your trades carefully.
Have a good one.