Yesterday was hourly OB setup, today may paint another on daily
Yesterday, I was happy to take an hourly setup. Price raided hourly liquidity area (above yellow line) into a single print (purple) with orderblock shortly above it (green). I anticipated the setup and placed my short limits just below the single print (my limit is in blue) and closed it all in several hours in anticipation of FED's rate decision today.
What was an hourly setup yesterday may materialize today on the daily chart. I identified another liquidity area with single print hovering over it. Further up, and this is not entirely obvious as they come from the weekly chart, there are two blocks. I think aiming for the big weekly orderblock would be way too ambitious, FED will not surprise us as much. However, below it, there is what I believe to be propulsion block. I am confident it is a reclaimed block from the weekly, but it may or may not abide by the definition of propulsion block, also.
Based on the FED's comments following their rate hike, I will aim to open a short at some point near one of those areas. Ballistic rallies following FED's comments are often short-lived and I really like the prospect of the potential reward here. Albeit optimistic, I will put my limit orders near the propulsion block and trade at the market price if only single print is reached.
"A wise man can hear profit in the wind." - Ferengi rule of acquisition n. 22
What was an hourly setup yesterday may materialize today on the daily chart. I identified another liquidity area with single print hovering over it. Further up, and this is not entirely obvious as they come from the weekly chart, there are two blocks. I think aiming for the big weekly orderblock would be way too ambitious, FED will not surprise us as much. However, below it, there is what I believe to be propulsion block. I am confident it is a reclaimed block from the weekly, but it may or may not abide by the definition of propulsion block, also.
Based on the FED's comments following their rate hike, I will aim to open a short at some point near one of those areas. Ballistic rallies following FED's comments are often short-lived and I really like the prospect of the potential reward here. Albeit optimistic, I will put my limit orders near the propulsion block and trade at the market price if only single print is reached.
"A wise man can hear profit in the wind." - Ferengi rule of acquisition n. 22
Trade closed manually:
The theory was sound, my execution not. After the numbers came out, only the hourly level was reached. I tried to get in, but was stopped out later only to see it all reverse.
But that is why we diversify. I had limits on EURUSD nad AUDCAD which both already made up for the loss and then some.
But that is why we diversify. I had limits on EURUSD nad AUDCAD which both already made up for the loss and then some.