OMG is overbought, short term correction paves the way to shorts
Disclaimer: This is not financial advice
In high leverage trading your entry is a matter of life or death, you need to have patience and to not let fear of missing out drive you into opening rushed positions. Map out your trades in advance and wait for the right entry. Our aim is to capture quick & safe profits, not to predict the future, this is possible only if we fight for a good entry. So if you're nervous and itching to open a position then take a few deep breaths and don't trade!
OMG has done a lot, aside from the significant rally since March it also broke out of a 3 year bearish channel entering price discovery. Anything can happen here however we as traders have to look for cues to assess risk and identify opportunities where to position ourselves. 9.3 was a clear short opportunity, now we are pretty much in no man's land. I do have a bearish bias though for a few simple reasons. First of all we are still very close to the 9.3 resistance so RR favors bears, then indicators show that we are in deep overbought territory while the multi year upper trendline of the bearish channel still hasn't been retested. I believe a retest, even shallow, is in the cards. We could see 1.4-1.5 in the mid term. In the meantime however we are probably either going sideways or moving slowly/quickly lower. Sideways is a risk for those looking to open high leverage shorts so to handle this we try to identify the limits of a potential channel and based on that spot entries for high leverage shorts and longs. It is worth noting that a bullish retest of the 6.72 area seems to be failing so this area remains resistance and creates an important shorting opportunity:
Entry: 6.75-6.87 SL:7 TP1: 4.74 TP2: 3.87 TP3: 2.7
In high leverage trading your entry is a matter of life or death, you need to have patience and to not let fear of missing out drive you into opening rushed positions. Map out your trades in advance and wait for the right entry. Our aim is to capture quick & safe profits, not to predict the future, this is possible only if we fight for a good entry. So if you're nervous and itching to open a position then take a few deep breaths and don't trade!
OMG has done a lot, aside from the significant rally since March it also broke out of a 3 year bearish channel entering price discovery. Anything can happen here however we as traders have to look for cues to assess risk and identify opportunities where to position ourselves. 9.3 was a clear short opportunity, now we are pretty much in no man's land. I do have a bearish bias though for a few simple reasons. First of all we are still very close to the 9.3 resistance so RR favors bears, then indicators show that we are in deep overbought territory while the multi year upper trendline of the bearish channel still hasn't been retested. I believe a retest, even shallow, is in the cards. We could see 1.4-1.5 in the mid term. In the meantime however we are probably either going sideways or moving slowly/quickly lower. Sideways is a risk for those looking to open high leverage shorts so to handle this we try to identify the limits of a potential channel and based on that spot entries for high leverage shorts and longs. It is worth noting that a bullish retest of the 6.72 area seems to be failing so this area remains resistance and creates an important shorting opportunity:
Entry: 6.75-6.87 SL:7 TP1: 4.74 TP2: 3.87 TP3: 2.7
Trade active:
Closing my OMG short here
Trade closed manually