Chairman Powell is concerned about containment of Covid "D", and its impact on economic activity. He may have assessed a date to start bond taper on coming September far too soon. All majors spiked higher against the Dollar on his caushion.
My position short @ 1.3765 + 1.3720 was stopped out at 1.3780. This is a 42 pt loss ~ 1.2 % of a 10k account @ 30k trade size
even though the risk is dismal, I would not have held on to the trade because it was based on a break of a wave-5 (yellow) down. As this failed to materialize, the market will be doing a prolongation of the wave-4 (yellow) structure possibilities of which are shown on chart. The bias remains the same = to the down side. (The market being contained by negative momentum cycles on both 4hr & Day momentum cycles).
As of next week then, I will short by limit :-
1/3 size @ 1.3810
1/3 size @ 1.3850
1/3 size @ 1.3930 ( 2nd large head could be seen on a weak NFP #)
Average becomes 1.3863. Preliminary Stop at 1.4050. Target 1.3650. (150 pts from 1st entry @ 1.3810 level).
Money & Risk Management :-
Keeping Risk @ 3% on a 10k account, equates to holding a 16k position.
The same position size and same trade parameters, would equate to engaging @ 10% risk on a 3k account
Entries / targets & stops will be amended according to market dynamics - beginning & through the coming week.
Profitable Trading to Everyone
Summerset
My position short @ 1.3765 + 1.3720 was stopped out at 1.3780. This is a 42 pt loss ~ 1.2 % of a 10k account @ 30k trade size
even though the risk is dismal, I would not have held on to the trade because it was based on a break of a wave-5 (yellow) down. As this failed to materialize, the market will be doing a prolongation of the wave-4 (yellow) structure possibilities of which are shown on chart. The bias remains the same = to the down side. (The market being contained by negative momentum cycles on both 4hr & Day momentum cycles).
As of next week then, I will short by limit :-
1/3 size @ 1.3810
1/3 size @ 1.3850
1/3 size @ 1.3930 ( 2nd large head could be seen on a weak NFP #)
Average becomes 1.3863. Preliminary Stop at 1.4050. Target 1.3650. (150 pts from 1st entry @ 1.3810 level).
Money & Risk Management :-
Keeping Risk @ 3% on a 10k account, equates to holding a 16k position.
The same position size and same trade parameters, would equate to engaging @ 10% risk on a 3k account
Entries / targets & stops will be amended according to market dynamics - beginning & through the coming week.
Profitable Trading to Everyone
Summerset
