Long USDSGD, buying a pullback in a clear uptrend
The USD is trending higher against all pairs at the moment. I am already long the dollar v AUD (stop at entry) and v MXN (currently underwater). Opportunities to buy the dollar continue to present themselves and because the AUD trade is risk-free I am prepared to take one more but I will tread carefully I don't like trading highly correlated assets.
This opportunity is to buy the USD v Singapore dollar, the pair is in an uptrend with a series of higher highs and higher lows in place, it would appear that price is pulling back from an impulsive 5 wave move higher. Whenever an impulsive 5 wave move appears it always implies market strength in one direction and is almost always followed by a second 5 wave move in the same direction. It is common to have a three wave move in between and that might be what is happening right now.
If the pair can make it low enough for me to buy (indicated by the green box) I will take the trade. I will risk 2% of equity and target a risk reward of 3:1, that is marked on the chart at the blue -0.8 (1.3632) but would be happy to get 2:1 at 1.35995.
Buying pullbacks against the trend in this manner means we will generally be on the right side of the trade, controlling risk by choosing position size with care and moving the stop to break even at the appropriate time means we should never suffer a significant loss.
This opportunity is to buy the USD v Singapore dollar, the pair is in an uptrend with a series of higher highs and higher lows in place, it would appear that price is pulling back from an impulsive 5 wave move higher. Whenever an impulsive 5 wave move appears it always implies market strength in one direction and is almost always followed by a second 5 wave move in the same direction. It is common to have a three wave move in between and that might be what is happening right now.
If the pair can make it low enough for me to buy (indicated by the green box) I will take the trade. I will risk 2% of equity and target a risk reward of 3:1, that is marked on the chart at the blue -0.8 (1.3632) but would be happy to get 2:1 at 1.35995.
Buying pullbacks against the trend in this manner means we will generally be on the right side of the trade, controlling risk by choosing position size with care and moving the stop to break even at the appropriate time means we should never suffer a significant loss.
Order cancelled:
The pullback on this chart did not materialise, the depth of the pullback was far too short to be a wave 2. As a result, I have adjusted the count and am now expecting the next high to be the red wave 1 moving the circled blue iii and iv one step higher on the chart.
I will be looking to buy the red wave 2 pullback in the coming hours and days if it materialises and will update with a new chart when it does so.
I will be looking to buy the red wave 2 pullback in the coming hours and days if it materialises and will update with a new chart when it does so.
