Tom Hall Market Review #2 - Friday, 08 March 2019
Australian Dollar / Japanese Yen
The AUD.JPY, unfortunately, failed to present a consolidation period before the continued decline, invaliding a short opportunity.
The initial impulse is now approaching oversold on the 4-hour and daily timeframes, indicating a consolidation period into early next week is highly probable.
Canadian Dollar / Japanese Yen
The CAD.JPY decline this week is the largest of this year. Unfortunately, we were unable to advantage of the move as price failed to present a consolidation period.
Its occasions like this where traders become frustrated, executing positions when the price is accelerating, by doing so decrease your reward comparative to risk while exposing yourself to a significant amount of unnecessary drawdown.
Euro / U.S. Dollar
I approached this week with caution, given the conflicting information across multiple trading timeframes.
Although indecisive, there were still trading opportunities available, but
the timing of the entry was crucial considering the minimal reward/risk.
The weekly descending trendline dating back to February 2018 and 1.1300 horizontal structure support presented a wedge formation; this outlined clear trading levels for both short and long opportunities.
The possible reward comparative to risk for the short opportunity failed to exceed 1:1, this for me invalidated the opportunity.
I then shifted my attention to a long opportunity; the intraday price began to decelerate on approach to the 1.1300 horizontal support.
The equilibrium lasted only eight hours before the continued acceleration occurred, breaching the 1.1300 structure support and invalidating my long opportunity.
U.S. Dollar / Swiss Franc
At the beginning of this week, I outline the lack of downside acceleration after the 1.0050 weekly rejection.
Analyzing the daily timeframe confirmed my caution was justified. What looked to be a reversal on the weekly timeframe was merely a consolidation period on the daily timeframe.
The negative confluence significantly outweighed any positives, invaliding a trade opportunity.
I talk so often about utilizing multiple timeframes to identify traps; this is a textbook example of why it's so important to be hyper-aware of price action behavior.
Bitcoin / U.S. Dollar
This year the indecisive price action has failed to present a clear trading opportunity. However, I continue to analyze the multiple timeframes to gauge an early indication of the future direction.
My focus moving forward is to monitor the weekly timeframe for a breach of the February 2018 descending trendline.
The range between $4,200 and $6,130 is the zone where I'm looking to exploit and take advantage of the healthy reward comparative to risk.
Australian Dollar / Japanese Yen
The AUD.JPY, unfortunately, failed to present a consolidation period before the continued decline, invaliding a short opportunity.
The initial impulse is now approaching oversold on the 4-hour and daily timeframes, indicating a consolidation period into early next week is highly probable.
Canadian Dollar / Japanese Yen
The CAD.JPY decline this week is the largest of this year. Unfortunately, we were unable to advantage of the move as price failed to present a consolidation period.
Its occasions like this where traders become frustrated, executing positions when the price is accelerating, by doing so decrease your reward comparative to risk while exposing yourself to a significant amount of unnecessary drawdown.
Euro / U.S. Dollar
I approached this week with caution, given the conflicting information across multiple trading timeframes.
Although indecisive, there were still trading opportunities available, but
the timing of the entry was crucial considering the minimal reward/risk.
The weekly descending trendline dating back to February 2018 and 1.1300 horizontal structure support presented a wedge formation; this outlined clear trading levels for both short and long opportunities.
The possible reward comparative to risk for the short opportunity failed to exceed 1:1, this for me invalidated the opportunity.
I then shifted my attention to a long opportunity; the intraday price began to decelerate on approach to the 1.1300 horizontal support.
The equilibrium lasted only eight hours before the continued acceleration occurred, breaching the 1.1300 structure support and invalidating my long opportunity.
U.S. Dollar / Swiss Franc
At the beginning of this week, I outline the lack of downside acceleration after the 1.0050 weekly rejection.
Analyzing the daily timeframe confirmed my caution was justified. What looked to be a reversal on the weekly timeframe was merely a consolidation period on the daily timeframe.
The negative confluence significantly outweighed any positives, invaliding a trade opportunity.
I talk so often about utilizing multiple timeframes to identify traps; this is a textbook example of why it's so important to be hyper-aware of price action behavior.
Bitcoin / U.S. Dollar
This year the indecisive price action has failed to present a clear trading opportunity. However, I continue to analyze the multiple timeframes to gauge an early indication of the future direction.
My focus moving forward is to monitor the weekly timeframe for a breach of the February 2018 descending trendline.
The range between $4,200 and $6,130 is the zone where I'm looking to exploit and take advantage of the healthy reward comparative to risk.
