ZB1!
TBonds (ZB1!) 4H - Trapped traders on both sides of priceTrade setup
There are trapped traders on both sides of price above monthly highs & lows for TBonds ZB1! on 4H timeframe.
When price comes back to either of these zones - these trapped traders will want to exit - giving us an exit!
Risk management
1) Reduce 50% at 1R => Trade becomes risk free
2) Reduce further 25% at 2R AND move SL to break-even
3) Close trade at 3R
4) Winner = 1.75R
Strategy
Pickup a pair which is highly correlated to DXY (if trading DXY or an uncorrelated instrument, ignore the correlation)
AND
Wait for market structure to break, then trade the retest of that zone. Zone is drawn using the first candle which crossed the pivot high/low to begin trapping the traders
AND
Liquidity in form of equal highs/lows should not be present behind the stop loss
AND
Since the pair is highly correlated to DXY , the formation of HH/LL in DXY should support the trade's direction at the time of zone's formation
Bonds are approaching this huge support zone!The 30 year bond is approaching a huge support zone! Constructive if this zone holds! Bearish if it breaks down below this zone.
What is happening in interest rates market? ExplainedI got a few questions about interest rates this week. Well, I don’t understand why people are waiting for some disaster in this market. Commercials are selling 10-year Nonets and buying 30 year Bonds. That means smart money expects that short-term rates are going to go down and long-term rates are going to stay where they are. This is a bullish yield curve development and a normal market. However, it doesn’t mean a huge rally is about to start in Bond market. It will take time. Short-term rally? – Well, possibly if on Monday we get above Friday’s high. But be realistic about your potential targets.
