Thus far today, cable's trading range is Op 1.6550 (appx) Hi 1.6744 Lo 16423. Intra-day, we have had 2 big developments on the daily chart :=
- Broke triangle formation on topside at 1.6589 and traded to a high of 1.6744. Anyone watching this surely would have concluded that the break was for real, without having to wait for the daily close to confirm
- Along the way we took out a significant previous high at 1.6661 as well.
And yet, we are now trading some 300 pips lower at 1.6476 as I write (lo 1.6423); a pullback of this magnitude just hours after a seemingly valid upside breakout would surely have killed a lot of short term traders. This is the reason why I do not like to trade off daily time frames. There is too much noise and for T4L practitioners operating "blind" without seeing flows, it is important to formulate one's trading strategy to compensate for such disadvantages. For me, this means trading in "SMALL" and extending one's time frame to weekly and above to rise above the short term noise. Half the battle is about preserving holding power to see one's view out through the chop.
Thus far today, cable's trading range is Op 1.6550 (appx) Hi 1.6744 Lo 16423. Intra-day, we have had 2 big developments on the daily chart :=
0 comments:
Post a Comment