Scan Of The Markets
The unquestionable driver to set the tone in markets as a new week kicks off is the health of US President Trump after being diagnosed with COVID-19 last Thursday. The news led to an upset in risk sentiment even if by the end of the day, it still felt as though the market behaved far from pricing in a worst case scenario where Trump’s health deteriorates significantly and the re-election odds shattered further following last Tuesday’s debacle of the TV-debate.
According to experts in the matter, even if Trump is 74 years old, and based on his medical history, he is considered within the high risk category risk, the chances of him getting through this one are in the upper 90%. Besides, there are reports circulating around that he could be returning to the White House as soon as today. Will that inject a renewed boost of confidence in financial markets? The jury is still out there. That’s the part where as traders we can just wait and observe.
What we can do, however, is to keep dissecting what type of ebbs and flows have transpired as of late in order to set us out with a directional premise. I will, therefore, keep hammering home the concept of fractals-based order flow to define the governing structures. In today’s video, I go through once again an example of the type of neat reads one can get when applying these concepts, in this case, in the EUR/USD market.
Hot Trade Of The Day
To see an expanded version, right-click and select ‘open link in new tab‘. In this section, I pick a market or several ones that presented an opportunity to buy on weakness or sell on strength based on the higher timeframes outlook.
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Insights – Hot Trade Of The Day
In this video analysis, I dissect the information above. Ultimately, it is the traders’ call, via a set of entries thoroughly backtested, to enter and manage a position, hence the video is intended as educational in nature and not financial advice.
Video Length: 00:01:58
Recent Economic Indicators & Events Ahead
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Source: Forexfactory
Important Footnotes
MARKET STRUCTURES
Markets evolve in cycles followed by a period of distribution and/or accumulation. To understand the principles applied in the assessment of market structures, refer to this video. Fractal breakouts is at the epicenter to assist us in the analysis of chart structures.
MARKET MOMENTUM
In order to assess the market momentum of a particular asset, I’ve promoted for years the idea of using what I call the smart money tracker. The settings and the indicator can be obtained via our Discord room, where traders from all walks of life interact frequently. In this video, I lay out the elements I look into to call trend directions.
PROJECTION TARGETS
The usefulness of the 100% projection resides in the symmetry and harmonic relationships of market cycles. By drawing a 100% projection, you can anticipate the area in the chart where some type of pause and potential reversals in price is likely to occur, due to 1. The side in control of the cycle takes profits 2. Counter-trend positions are added by contrarian players 3. These are price points where limit orders are set by market-makers. You can find out more by reading the tutorial on The Magical 100% Fibonacci Projection.
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