DislikedThe "deal" in the US brought us also US$ rocket to the downside. Wow, EU, GU, AU.... everything went sky high. And it brought us back well over h4 and to d1 upper band. With regards to history, we are in strong resistance levels, but the move up was incredible. Any thoughts with regards to how to read this in ETMATE? BRIgnored
My humble take on this situation for a conservative trader is to stay in cash which is the best MRM (Money and Risk management) @ these present times.
When big fundamental risk events like these occurs we small traders better stay aside until the markets resume their normal action, that is for the conservative short term traders, aggressive traders can play this volatility and if they are skillful can turn it to their advantage with a rigorous attention to the news and their open positions but that takes a serious dedication and a complete screen time (imagine that the guys in Washington stayed up all night to complete the Debt ceiling deal) can u do the same in front of your charts waiting for every piece of news released that can trun a bear market to bull and vice versa.
As for the ETMATE like you all already know all risk currencies was signaling short before the Deal and here comes your risk management skills, i was short EU, GU and others but i was starting to move my trailing stop also to the lower high every time PA moved down so i was able to get out @ minimum damage on the EU (5 Pips loss and 13 Pips profit on the GU) even thought i was not convinced on the longer TF's of this bear move and on my other long term trend following accounts i was still long (And still til this moment) aiming @ the most crucial 37'sh Resistance level on the EU and waiting for a PA signal to get out.
I said it a million time and it happened in the past and it will happen in the Future, Nothing is sure in these Markets Hell even Jessy Livermore said that the Markets are designed to fool the Normal and not so financially educated folks who try to play it and i can't stress enough the most important risk management tool and the Importance of having a good R:R Ratio in your trades like @ least a 1:2-3.
This is my opinion and these are the thoughts and rules that i live by every day I'm in the Markets Trading.
Best
B.R.
Master Your Setup, Master Your self. (NQoos)