View: Blanks of the trader
Blanks of the trader
What signifies any break in trading based on experience so far is that very often it takes some time to regain sharpness while identifying the best setups. As of last week a had two losers at the end of the week with CAC40 setup netting -29pips and GBP/USD short - 32 pips on the balance. This is the time when having hedging strategy in place becomes crucial to minimize the losses and leave capital for the opportunities in the future. There any many ways to hedge the position, the most obvious is to take opposite side of the trade, or use options, which is in my opinion is the best way due to the fact that this instrument is not so sensitive to volatility.
Looking at the next week, two setups i will be looking at. CAC40 index is very close to major resistance area @4165 area on daily chart. We have seen some congestion already @4130's area with clear bearish divergence. As it stands now, shorting anywhere in the area in yellow on the chart will be very much against the trend, therefore as usual position size has to be considered.
Another opportunity is on GBP/USD pair, this instrument clearly broke 1.57 area pivot, currently heading towards 1.6056 where 3 drives pattern completes in line with fibonacci cluster in yellow. Again this is very much short entry against the trend.
This will sum up this week, have a good one traders!
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