Comment Ideas and/or any reasons why you would or wouldn't take this trade!
Going short on DXY.
Setup 1 :
Sell Limit @ 107.219
S/L: 107.495
T/P: 105.476
Profit/Loss = 6.32
Setup 2 (Lower-Risk):
Sell Limit @ 107.319
S/L: 107.531
T/P: 105.476
Profit/Loss = 8.69
Why?
- Retraced back up past 0.79 & 0.759( OTEs ) on Fib filling market imbalance left from previous sell
- Market imbalance left behind from previous buys (FVGs)
- Current momentum is Bearish
- Strong rejection from Bearish OB
Why not?
- DXY did not break market structure to make a new low - not required but good to have as confirmation for direction
- DXY has the potential to break bearish OB and create a new high - New low has not been made on higher timeframes
- Lower timeframes are not as reliable as higher ones
--------------------------------------------------------------------------------------
Remember, only risk up to 5% of your account per trade. There are two potential setups for this trade so if you are going to take one, it is almost always better to place a lower-risk trade that you might miss than a high risk one that has a higher risk
This material is for educational purposes ONLY.
Trade smart.
--------------------------------------------------------------------------------------
Glossary:
OTE = Optimal Trade Entry (Most opportune place to enter a trade)
OB = Order Block (Where price is likely to make a reversal)
FVG = Fair Value Gap (Gaps left when only sellers/buyers were moving price down/up)
Going short on DXY.
Setup 1 :
Sell Limit @ 107.219
S/L: 107.495
T/P: 105.476
Profit/Loss = 6.32
Setup 2 (Lower-Risk):
Sell Limit @ 107.319
S/L: 107.531
T/P: 105.476
Profit/Loss = 8.69
Why?
- Retraced back up past 0.79 & 0.759( OTEs ) on Fib filling market imbalance left from previous sell
- Market imbalance left behind from previous buys (FVGs)
- Current momentum is Bearish
- Strong rejection from Bearish OB
Why not?
- DXY did not break market structure to make a new low - not required but good to have as confirmation for direction
- DXY has the potential to break bearish OB and create a new high - New low has not been made on higher timeframes
- Lower timeframes are not as reliable as higher ones
--------------------------------------------------------------------------------------
Remember, only risk up to 5% of your account per trade. There are two potential setups for this trade so if you are going to take one, it is almost always better to place a lower-risk trade that you might miss than a high risk one that has a higher risk
This material is for educational purposes ONLY.
Trade smart.
--------------------------------------------------------------------------------------
Glossary:
OTE = Optimal Trade Entry (Most opportune place to enter a trade)
OB = Order Block (Where price is likely to make a reversal)
FVG = Fair Value Gap (Gaps left when only sellers/buyers were moving price down/up)
Comment:
Prior to the FOMC statement DXY moved back towards our entry position, for those looking to increase their trade size, and now we're headed towards our T/P. Lock partials and keep holding!
Trade closed manually:
Closing trade on DXY due to interest rate increases - most likely to send US dollar strength up and hit the Stop Loss
Comment:
If you held on Friday you would've hit T/P1 and still been in profit now! $$
Trade closed: target reached:
T/P1 & T/P2 Smashed!!
We continue you to hold; trade is still valid.