Looking at a potential 1:55 short on EURUSD, my bias is relevant to DXY. Expecting retracement on Monday to clear up Thursday/Friday liquidity. My POI is based off of a BTS that needs mitigating, as it has taken out EQH's and left and IMB after it which is all signs of Smart Money.
The market has left some EQH's to be taken out on the way to the POI, with IMB's on price above it also. Giving me extra conformation that we will see the market expand upwards.
I will be risking 1% on on the entry given, but also 1% on LTF entry.
Nice! I also expect eurusd to drop too just waiting on the retracement
EasyCharts
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You believe me yet? Absolutely no chance of a move that great in the timespan you allocated.
EasyCharts
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@EasyCharts a retrace doesn’t go parabolic. That’s the whole point. Its a pullback against the trend not starting a new trend
ZakRafiq0705
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The DXY broke structure to the downside, now to see how far we take it
EasyCharts
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How much of a retracement are you expecting on dxy? To get to your sell entry would require a serious break of structure past a level that was twice rejected as a right shoulder. Im not sure I see enough downside potential on dxy to warrant that move on euro especially as it’s currently looking weak against other pairs
ZakRafiq0705
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@EasyCharts there’s a fair amount of IPA in the premium part of the range. The market needs to rebalance it or could use it later to support a short movement. Remember as well you can have divergence between pairs which is strong conformation of smart money
EasyCharts
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@ZakRafiq0705 It’s not impossible by any means. Can definitely have divergence between pairs, however with the dxy being comprised of 58% euro it’d be incredibly rare to see a divergence of that scale between the two as they’re well known correlates
ZakRafiq0705
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Mate I’m just following price action, if it reacts lower then I will look to take a trade with LTF PA, but I do believe those EQH’s will be taken, it looks like internal liquidity to me, something that makes retail traders think a LH is formed, if we don’t see retracement into the area today we will eventually, that price action has been left insufficient for a reason
EasyCharts
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@ZakRafiq0705, Hope you have a good trade bro. I respect your analysis