G’day Surfers – heard any good fishing stories lately?
I don’t go fishing as much as you would expect from someone who lives in Lake Macquarie, Australia where our beaches are world renowned and we boast the largest estuarine Lake in the Southern Hemisphere. Yesterday however produced a classic “one that got away” tale for our trading strategy. Just like we could smell in the air, the dominant Bearish Trend was just too obvious so we set our lines in anticipation of the Bull run. Obligingly, Price Action came to our bait and started to nibble. A dark storm (News announcement) loomed large and we were forced to run for cover, leaving the pips dangling on the line. The storm was a fizzer but by the time we had returned to our line, both bait & pips were swimming freely, away from our grasp. You see our Strategy avoids trading around certain news announcements and has preserved our bait on many occasions. This time however, the fish got away just as we were about to haul him in. NO PIPS, NO LOSS, NO PROBLEM.
It’s a very familiar looking EUR/USD that greets us this morning – overnight crash followed by consolidation. Not surprisingly, so too the technicals governing us today: Market consolidating below an untested Daily Pivot in a very Bearish trend and our Pivots telling us the EURO is oversold. The chasm between Daily & Weekly Pivots is out to 135 pips and it’s now time I put Shorts on hold. Therefore I’m focused on finding not a Long entry but a REASON to find a long entry. Currently I have only the oversold component – I NEED to see confirmation that the Price Action is ready to reverse. This will come with normal technicals like a double bottom, inverted head & shoulders or the like. Until I see this confirmation, any entry is VERY risky.
The Day Ahead
There’s a fish out there with my bait in its gut. I shall set another snare and hope he has acquired a taste for my offerings. As always I look forward to the challenge of matching the Technical situation to what Price action delivers.
Enjoy your expedition.
Geoff Pyne | Certified SurfingThePips.com Trader
Do YOU want to start making money from Home?
-Learn a STEP-by-STEP Method to Make Money Trading Forex from Home;
-You DON’T Need any Previous Experience;
-Limited Time Offer: $1 Trial;
-Places Subject to Availability.