Great Conditions To Trend Trade Continue
Scan Of The Markets
The recovery in the USD following last Friday’s month-end re-balancing flows, alongside that aggressive jawboning by the Bank of Japan to intervene in the JPY market (did they actually intervene?) is what stood out to me out of the last 24h of action.
There has been a slight reduction in the number of trending markets as the Asian markets open this Monday. Still, as intraday swing traders looking to exploit directional biases in higher timeframes, we are still provided with just under 20 markets that qualify.
In the fundamental front, watch the Australian Dollar as sentiment towards the currency may get a hit after the state of Victoria announced a curfew from 8pm to 5am after the spike in COVID-19 cases. What’s most worrisome is that authorities are clueless on more than 750 cases, not able to trace back the source of origin.
Besides, US Congress appears to be so far failing to make any headway on the much-awaited new stimulus package over the weekend. If this deadlock continues (next soft deadline is this coming Friday), it may too take a hit on sentiment. As usual, let technicals dictate if these clouds will cast a shadow long enough to invalidate certain trends.
Lastly, it’s important to keep an eye on this week’s actions by the Trump administration as the cold war between the US and China continues with relationships going from bad to worse. Trump is set to announce a set of measures against Chinese-owned software enterprise, with plenty of talk about his plans to ban the popular app TikTok.
Trending Markets On My Radar
In this section, I short-list the markets that meet the criteria or are about, in order to engage on a directional trend off higher timeframes through a 15m chart entry. To get a deeper dive into the markets included in this section, watch my daily video.
Hot Trade Of The Day
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.
Note, this is not a trade I was able to take as it occurred at the London open, which is not a time I trade the markets. Nonetheless, it shows how incredibly powerful it is to enter in line with the dominant trend at an area of discount. This trade could have made you 6 times your return on the initial risk. It means that for every $1,000.00 risked you could have made about $6,000.00 as the absolute best case scenario.
Insights Into Market Studies
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: 00:19:18
Recent Economic Indicators & Events Ahead
(Click on image to enlarge)
(Click on image to enlarge)
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.
The Daily Edge is authored by Ivan Delgado, Head of Market Research at Global Prime. The purpose of this content is to provide an assessment of the market conditions. The report takes an in-depth ...
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