G’day Surfers – feeling like you missed the train? Yes, thought so! Sir Elton John may not have had us in mind when he released his song but you could be forgiven for thinking that “this train don’t stop there anymore”. Of course it’s not the case, the market always has and always will, do what it wants. The successful trader will be waiting at the station, patiently for when the train DOES stop and not trying to board until it does. We are very fortunate that we have located most of the stations and we know that they will stop to pick us up, maybe when they have empty seats.
The point I make is of course that we can’t be in every move the market makes – we don’t have to be to make money. We need to be sure that when we enter, we have probability in our corner and pips in our bank.
Price decided to break the month old uptrend, crashing almost 150pips from yesterday’s high. Another 50 have been shed during Asia session today. Apart from an imperfect setup early in the move (will deal with this in Webinar) the market produced only one possible entry for our strategy – a doji break as an ABC off our support trendline on H4 with terrible risk/reward ratio, in late NY session. We don’t despair, we simply wait our turn – which will come for sure.
Having said that – it won’t be early in London session today as price is oversold (approaching 100pips from untested DP) and needs pullback. So I think we will be looking at a consolidation session early in our trading day. I can’t find any trading lines near to price action but have spotted an imperfect pennant which may prove interesting. It contains an StP secret candle pattern suggesting a long trade. Very risky as we would be guessing on a bottom turn and the master candle is outside our comfort zone. We will watch with interest as the day unfolds and hope that price action creates new lines for us.
Stay safe and have a great weekend everyone.
Geoff | Certified SurfingThePips.com Trader