Technically speaking
As noted on the chart, price is testing trendline support around 1.4380ish. This line has held on two other tests. Will be interesting to see if it holds this time. The next level of support is not too far down, coming in at 1.43.
Canadian manufacturing sales come out at 7:30 a.m. CST.
The big economic data this week will be from the Bank of Canada tomorrow at 9:00 a.m. CST.
Will it hold or break will likely be resolved tomorrow after this release.
Depending on what type of trader you are, you could take it now with a tight stop or wait until the big economic events are out of the way. I prefer the later.
Always trade your plan, manage your risk, be disciplined.
My checklist:
Is this trade worth taking?
* Where is the R/R right now?
* Is the market trending or ranging in the time frame you are watching? If trending, trending which way?
* Is price currently at a level that is obvious to all market participants? Remember, it is their orders that will push your trade to profit or loss. What are other traders seeing?
* What is the price action? Is it obvious?
If the answer is yes to all three questions, take the trade.
If two of the answers are yes, use your best judgment.
If only one of the answers is yes, pass on the trade.
There are exceptions, know when to use them.
Executing a trade
* Check if there are any major economic events within the next 24 hours.
* Make sure the position is sized correctly when entering the amount.
* Make sure the stop is in place before the order is executed.
* Make a notation in your spreadsheet about why you took the trade, targets, stops, etc.
End of day
* Make sure stops on open positions are correct. Adjust as needed.
* Execute new trades.
As noted on the chart, price is testing trendline support around 1.4380ish. This line has held on two other tests. Will be interesting to see if it holds this time. The next level of support is not too far down, coming in at 1.43.
Canadian manufacturing sales come out at 7:30 a.m. CST.
The big economic data this week will be from the Bank of Canada tomorrow at 9:00 a.m. CST.
Will it hold or break will likely be resolved tomorrow after this release.
Depending on what type of trader you are, you could take it now with a tight stop or wait until the big economic events are out of the way. I prefer the later.
Always trade your plan, manage your risk, be disciplined.
My checklist:
Is this trade worth taking?
* Where is the R/R right now?
* Is the market trending or ranging in the time frame you are watching? If trending, trending which way?
* Is price currently at a level that is obvious to all market participants? Remember, it is their orders that will push your trade to profit or loss. What are other traders seeing?
* What is the price action? Is it obvious?
If the answer is yes to all three questions, take the trade.
If two of the answers are yes, use your best judgment.
If only one of the answers is yes, pass on the trade.
There are exceptions, know when to use them.
Executing a trade
* Check if there are any major economic events within the next 24 hours.
* Make sure the position is sized correctly when entering the amount.
* Make sure the stop is in place before the order is executed.
* Make a notation in your spreadsheet about why you took the trade, targets, stops, etc.
End of day
* Make sure stops on open positions are correct. Adjust as needed.
* Execute new trades.
