This week has been a challenging week / month.
With main trend still short on the dollar pairs, it has been hard to find good risk reward strategy trades.
As you know risk reward is a key part of the strategy.
It is very easy to jump into a trade with a 100 pip stop loss and a target of 50 pips.
This however is not how I have made money in the past.
I like a nice tight stop loss with a realistic target. 3/1 as a minimum.
As the Dow continues its climb higher and the currencies remain supported.
However the pull back on the above pairs may be starting to run out of steam.
The charts below show price has returned to the 38.2% Fibonacci Level and previous resistance.
Cable:
EUR / USD:
If price holds below here then I will begin to look for short entries.
If price breaks through and up; then I will have to look for longs with the mid term trend.
I have been sitting on my hands for almost 2 months.
It is hard but it is the safest way to protect the capital and ensure I only trade with the strategy
I will be in touch as soon as a strategy trade has been identified.
THEN I WILL NAIL IT!!!
I trust you are all well.
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