BUND - Still in a range, with better risk/reward on short side
Trend following systems work best and work only when there is a trend, or at least there is a chance that a trend can start. But also, trend following indicators can tell you when the instrument is not trending, just consolidating and trading in a range.
This is the case with the Bund.
Price is in the thick Kumo on the daily chart, while DMI is nothing else but a noise, with a super low ADX -> no trend. Also the 4 Hrs price action has been random for a while, just oscillating around the 143,15 relative equilibrium price.
When something is not trending, we either do not touch it, or we trade the range with the oscillators, which work the best in ranges.
In this case as price on the daily chart is close to the top of the Kumo, and the top of the trading range, while 4 Hrs Slow Stoch is overbought and likely to give a sell signal soon, we can try a small short position, with tight stop and with relatively good risk reward.
Sell 143,50-143,65 range, Stop ard 143,95 - 144, Target 142,63.
p.s.: my position so far is 0,5 unit short from 143,58
This is the case with the Bund.
Price is in the thick Kumo on the daily chart, while DMI is nothing else but a noise, with a super low ADX -> no trend. Also the 4 Hrs price action has been random for a while, just oscillating around the 143,15 relative equilibrium price.
When something is not trending, we either do not touch it, or we trade the range with the oscillators, which work the best in ranges.
In this case as price on the daily chart is close to the top of the Kumo, and the top of the trading range, while 4 Hrs Slow Stoch is overbought and likely to give a sell signal soon, we can try a small short position, with tight stop and with relatively good risk reward.
Sell 143,50-143,65 range, Stop ard 143,95 - 144, Target 142,63.
p.s.: my position so far is 0,5 unit short from 143,58