FX trading Oct 8-12

[trendie]

another news day. PPI etc

this is what I mused about last Friday, about trading news.

(today) the general trend was down, so rather than trying to second-guess the news-spike, to fade it back into the main trend.
last Friday it was generally UP, so it spiked down, and resumed UP.

today, the move was generally DOWN, it spiked up.
so a fade SHORT may be workable, to target the original pre-news price.
(obviously, if it spikes in the same direction of the underlying trend, you dont fade it)

the price today rose to the high of this mornings opening range, and back into the range of yesterdays US-session lows, but only by a bit.

unless there is going to be a sentiment change, would a short be in order?

 

[ampro]

Occasionally the local, or close range support-resistance zones can blur the picture.

Each of us obviously utilize our favorite markers, but when prices begin stringing out into an indecisive channel or range, such as Cable is currently displaying, the slightly wider levels can often assist in managing directional bias and/or helping with trade management as they come into view.

The chart I hoisted up in post #34 earmarked a couple recent north-south boundaries which have contained price into early-mid Oct trade from recent highs (2.0460-80 to 2.0250-70).

I guess a lot depends on your methods of execution as to how you’d play these potential rejections, but inside-outside bars at extremes, maybe 1-2-3 plays, neutral bar prints + bearish-bullish engulfers etc would offer decent entries with keen risk placements to test the flows?

The chart below is a 30min snap, but you could use any reasonably timed frame to get your bearings as price nudges these zones.

Reminds me of a thread started on here by a James123? He used an inside bar with stoch’s confirmer at key levels if my memory serves me correctly?

Something akin to that cute little set up would/could be one such tactic to leg you in.

The rest is down to allowing price to do it’s job (or not, which is what your stops are for) & merely managing the position & your risk according to your preferred tactic.

The simple age old method of peak-trough behaviour, when it jogs along as it does (on your favored template timeframe), would keep you honest & help to ride out the runs up & down the ladder.

Sure, they don't always pan out as we'd like, but there are plenty of times when they do - & if you scale in on these shifts (instead of stressing out on multi-week intraday entries & exits), they can make for decent returns!