Looking at the weekly diagram, two indications are making me go short at this pair:
First, the QQE index has penetrated the zero line, which doesn't smell well in my books. Second, the Anchored VWAP (its' upper band) worked well as resistance as the week passed—another ominous fact. Combining the data from last Friday and common logic (apart from the technicals), the FED doesn't like a "cheap" dollar policy cause of -what else- inflation. The interest rate hikes may continue or stop or not be so aggressive in the future, but the persistent inflation combined with a weak currency doesn't walk hand in hand.
Having said the above, I am going to go short first thing in my morning (7:00 PM EST) at Cable with a stop loss where the chart is pointing and an exit profit at the 38% level of Fibonacci retracement which -what a coincidence- confluences precisely with the middle band of VWAP. The Reward Risk ratio is 2; I will risk 2% of my prop account to get 6%. I know it will not be a "quick" trading, but I have the patience to wait.
Long live the King, but I wish his currency to melt.
First, the QQE index has penetrated the zero line, which doesn't smell well in my books. Second, the Anchored VWAP (its' upper band) worked well as resistance as the week passed—another ominous fact. Combining the data from last Friday and common logic (apart from the technicals), the FED doesn't like a "cheap" dollar policy cause of -what else- inflation. The interest rate hikes may continue or stop or not be so aggressive in the future, but the persistent inflation combined with a weak currency doesn't walk hand in hand.
Having said the above, I am going to go short first thing in my morning (7:00 PM EST) at Cable with a stop loss where the chart is pointing and an exit profit at the 38% level of Fibonacci retracement which -what a coincidence- confluences precisely with the middle band of VWAP. The Reward Risk ratio is 2; I will risk 2% of my prop account to get 6%. I know it will not be a "quick" trading, but I have the patience to wait.
Long live the King, but I wish his currency to melt.
Trade attivo:
Exactly before two weeks ago, I went short in the Cable @ 1.2583. I'll hold on in my position.
Trade attivo:
474 pips in the money, a big trade still on. I will move my stop loss to 1.2333 (100 pips from here) and I will hold on in the trade.
Trade chiuso manualmente:
While 35 pips of my initial target (1.2112), and 480 pips in the money, I thought to myself: "There's no reason to risk a 50 pips stop loss for a 35 pips from a target". I closed the trade manually @ 1.2145