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...
The specific focus of the Blog is on Global and Domestic interest rates and currencies market. I look at fundamentals to define my bias and corroborate that with a study of price action to put on high conviction trades. The views and opinions are those of author and author alone. ~ Author: Vaishali Bagchi