This is how I intend to play it
I put a hadge + small position at 1.4276. I was put on Thursday and got hit on Friday. Today I did the good old mistake to stare at the low tf and as a result the hedge closed at 1.4182 and reopened at 1.4202
I expect two major waves:
1. up to the Very important resistance of 1.4353. I will close the long positions at 1.4332 and than add more shorts (heavy) at 1.4350
Next I think we tank untill we meet the lower channel wall (daily) at it's intersection wit a major support at 1.3921. This should happen on Monday. If the price drops faster the lower wall will be touched at about 1.3880 on Friday. For some reason I just think that 1.3921 is the number for reversal. I intend to put a hedge on my shorts at this number and than add long positions depending on the PA. Next step is to set SL for the longs, close the shorts and pray I was right
After the lower wall we should quite rapidly rise to the upper and actually penetrating it a bit, which means above 1.5 and than a sharp drop and a complete trend reversal untill we are back to the 1.2xx zone
Thats the way I see it for the next 2-3 months
I put a hadge + small position at 1.4276. I was put on Thursday and got hit on Friday. Today I did the good old mistake to stare at the low tf and as a result the hedge closed at 1.4182 and reopened at 1.4202
I expect two major waves:
1. up to the Very important resistance of 1.4353. I will close the long positions at 1.4332 and than add more shorts (heavy) at 1.4350
Next I think we tank untill we meet the lower channel wall (daily) at it's intersection wit a major support at 1.3921. This should happen on Monday. If the price drops faster the lower wall will be touched at about 1.3880 on Friday. For some reason I just think that 1.3921 is the number for reversal. I intend to put a hedge on my shorts at this number and than add long positions depending on the PA. Next step is to set SL for the longs, close the shorts and pray I was right
After the lower wall we should quite rapidly rise to the upper and actually penetrating it a bit, which means above 1.5 and than a sharp drop and a complete trend reversal untill we are back to the 1.2xx zone
Thats the way I see it for the next 2-3 months
Riding the Dragon....