Mirabeau's dictum: Be bold, still be bold; always be bold.
Following up on the article I wrote earlier on the necessity of visualizing the possible paths the currency could take helps control risk. It is important to make an hypothesis but being prepared for everything else is more important.
What I have found particularly useful while trading intraday is not to buy into supports if I observe certain price action when the market momentum is lower even though other asset classes are pointing me in a different direction. What is this price action I'm looking for ?
The pair gets sold on day T-1 and selling continues into the post market hours. On day T, pair opens gap down or right below T-1 day support, selling pressure persists into the pre-open and open , chances are we have a trend day if the market momentum is downward.
I define them as gap and go trades. If I see this kind of price action, after the initial dip, I like to wait for a retracement and then pile into shorts and I do not go long unless I see a volume spike.
Look at the USDINR chart for today and see what I'm talking about.
Comments
Post a Comment