Bearish bias on DXY lining up with EUR long. Looks like price generated enough liquidity from late yesterday's consolidation. After an expansion phase to the upside, an accumulation phase is always happening in price action. The job here is to wait for some kind of liquidity sweep on the lower timeframe, keeping in mind the time. Time = News.
Comment:
Something to keep in mind:
If we have high impact news during New York session (like today), I would rather not trade London session. Price will seek for some kind of time based liquidity right before/during news. For this example, London session liquidity has been swept right before. The move higher during early London session generated a lot of sell-side liquidity. Early buyers came into the market, which was a yummy liquidity for price to take when the volatility came in before the news.
Always watch DXY too if you trade the majors. If you have an overall bearish bias prior news and you see liquidity building up (on the lower tf) below a 4h fair value gap, that is highly probable that Price will run for that liquidity and wick into the gap. That is the place where you should look for an entry pattern (like I posted on twitter). Don't FOMO in if you miss the 5m entry. You will most likely will get more chance to hop on the ride of that volatility. In these kind of situations Price will respect PD arrays until it matched opposing liquidity. Meaning that, your position will be safe with further gap or order block entries. Stops above the sweep's high. Or if you are more aggressive, you can put your stops above lower timeframe swing highs that were formed in a bearish gap. In that case keep in mind, if a higher timeframe gap is formed above your stop, Price can still take you out to rebalance the later formed gap. Tighter stops comes with more trade management and more fuckups. If you have a decent risk to reward with stops above the sweep's high, you are better off with that. At least in my opinion.
Ok hope you find value in this byyyyy
If we have high impact news during New York session (like today), I would rather not trade London session. Price will seek for some kind of time based liquidity right before/during news. For this example, London session liquidity has been swept right before. The move higher during early London session generated a lot of sell-side liquidity. Early buyers came into the market, which was a yummy liquidity for price to take when the volatility came in before the news.
Always watch DXY too if you trade the majors. If you have an overall bearish bias prior news and you see liquidity building up (on the lower tf) below a 4h fair value gap, that is highly probable that Price will run for that liquidity and wick into the gap. That is the place where you should look for an entry pattern (like I posted on twitter). Don't FOMO in if you miss the 5m entry. You will most likely will get more chance to hop on the ride of that volatility. In these kind of situations Price will respect PD arrays until it matched opposing liquidity. Meaning that, your position will be safe with further gap or order block entries. Stops above the sweep's high. Or if you are more aggressive, you can put your stops above lower timeframe swing highs that were formed in a bearish gap. In that case keep in mind, if a higher timeframe gap is formed above your stop, Price can still take you out to rebalance the later formed gap. Tighter stops comes with more trade management and more fuckups. If you have a decent risk to reward with stops above the sweep's high, you are better off with that. At least in my opinion.
Ok hope you find value in this byyyyy
Posted on twitter
x.com/armin_tra...205430317093211?s=20