Comment Ideas and/or any reasons why you would or wouldn't take this trade!
Going short on DXY.
Setup 1 [Entry on FVG]:
Sell Limit @ 107.219 S/L: 107.495 T/P: 105.476
Profit/Loss = 6.32
Setup 2 [Entry at OTE] (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
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
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Price has retraced all the way back to one of our entries. (Opportunity to sell more)
We continue you to hold; trade is still valid.
Comment
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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
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Closing trade on DXY due to interest rate increases - most likely to send US dollar strength up and hit the Stop Loss
Comment
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If you held on Friday you would've hit T/P1 and still been in profit now! $$