Basket Knights - A Basket Trading Round Table

"Cable was rocked today dropping as much as 1% in morning London dealing after Boris Johnson attempted a political maneuver to effectively suspend the government until October 14th."
- Boris Schlossberg

Well hindsight shows that yesterday's GBP strength was just "discounting" for us basket knights. It helped create a great reentry zone for the Sell basket.

Regards and stay fluid,

Ty

Meanwhile...my C5 H4 chart is still signaling a Sell basket...(and we can't say for how much longer - and we really don't care).

So the plan is STILL the same: Trade only sells until C5 H4 says otherwise (i.e. sell the peaks).

See my C5 H1 image below.

Regards and Stay fluid,

Ty

Watching this BIG Monthly Low to see if it wants to turn or not. Tried to guess it last week and got it wrong hence the stop out for a small loss. That's what I get for guessing...lol. Current Short still holding though.

Just as I finished writing the post got stopped out. Pips are pips. Probably done for the week with 700'ish.

Dave

+700+pips! banked in LESS than a week!? Ha! It's NOT everyday traders get those - so you have EVERY reason to be happy man. Congrats.

Let's see if we get a retrace-reentry this week or next.

Regards and Stay fluid,

Ty

+1,014 pips banked so far on the current Sell basket.

C5 H4 still signaling a Sell basket.

Regards and Stay fluid,

Ty

No re-entry for me yet and most likely won't trade after tomorrow due to the Hurricane that expected to hit us this weekend.

Dave

Ok got the re-entry and took some pips before bed. Have to prepare for the storm now so done for the week. Now just have to keep fingers crossed the power is on to start the trading next week.

Dave

Good job Dave! All I have now are 2 trades (both in floating profit): EJ and EG. Everything else's banked.

Good luck with the storm (is it the hurricane Dorian?). Hope it passes without damaging your power and other infrastructure.

Regards and Stay fluid,

Ty

If you paid attention, you'd have smiled to the bank and back trading the basket this week!

Not every week offers basketters the potential of banking a thousand pips.

And yet I see some traders complaining about how difficult it is to setup offline basket charts. Read post #1 again and again - when I began I wasn't THAT lucky! I read over a thousand pages just to get a hang of all of this and then began the MANUAL process of "settling" the basket pairs at one end of the trade/order tab. Sigh...

Bottom line: Change your focus and begin to profit.

Regards and Stay fluid,

Ty

Hello members,

Please take note of the change to the first post (post#1) as shown in the quote above.

I made this change because we need to make certain that those indicating interest in joining the BasketKnightsPSG are really interested in trading the basket and not just newbies who want to waste the time of our more experienced basket traders.

Please bear with me a'ight?

Regards and Stay fluid,

Ty

For joining the group i post a picture of my basket chart.

Thanks!

Welcome aboard Niedermaier. Link sent.

Regards and Stay fluid,

Ty

On the Fundamental front:

"Risk flows reversed in early European trading after China came out with some encouraging rhetoric noting that it did not want to exacerbate the trade tensions and that it was preparing for bilateral meetings in September....

...While markets hold out hope that the war of attrition between China and the US may have finally pushed both leaders to consider a more flexible negotiating posture, the more immediate catalyst for any further gains in USDJPY will be today's US GDP report. Granted that this will be a second revision reading it may still have an impact if the release prints at better than 2% consensus rate." - Boris Schlossberg

Now as a basket knight, you want to ask yourself how this bit of fundamental development affects your basket. Here's how:

Question: Observe your basket. WHERE is your basket at the moment?

Answer: Currently my overall sentiment is still a Sell basket on my C5 H4 but I can clearly see (as expected) that Price is "retracing"...

a.) This "retracement" could be a DISCOUNTING of the basket for subsequent Sell continuation. Now, as long as my C5 H4 remains a Sell this is my safest assumption.

b.) This "retracement" could also be the beginnings of a Buy basket. Too early to tell because it would have to transcend all the timeframes from m15 all the way to H4 before I can pay any attention to it (BUT...this is just MY way of trading, a lot of other basket knights also trade retracements as counter-H4 trades).

So fundamentally, the "rumours" about the US/China relations AND the expected USD Prelim GDP q/q High Impact news can, either be just a discounting for better sell prices OR the beginnings of a Risk On Buy basket.

As a basket knight this should be your thinking, this should be what you look at to prepare and position yourself to take advantage of. Either you sell again when you see a re-alignment of C5 m15+H4 after the the USD news or you wait to see if there is any TRUTH to the "rumours" concerning US/China relations. YOUR choice. (*Study the attached chart to see a visual depiction of the above).

That's it.

Regards and Stay fluid,

Ty

C5 H4 Yellow horizontal lines are weekly S&R, Tidane trend and Daily moving average.

Fantastic Markster, well done.

I like the idea of those weekly SRs - they make for good target zones too. Great contribution.

Regards and Stay fluid,

Ty

I was once asked if I was a fundamental or technical trader.

After thinking about it I replied that I was a technical trader who likes to hear/see fundamental reasons to keep my technical trades going in my desired/chosen direction. I do NOT open trades based on forecasts/ rumours / premonitions / hunches / or even news releases showing red/green numbers.

How does this tie to basketting?

Remember my C5 H4 sell basket? Well, it's still in place (that right there is a FACT: Measurable. Tangible. Dependable). So HOW are the fundamentals helping this present sell basket?

Here's how.
So far the news releases and forecasts have not been good for the following currencies (this week):
AUD
EUR
GBP
NZD

Meanwhile the USD has mostly been a chart topper with greener forecasts upfront.

What about the JPY?
Well we know that the JPY attracts traders in moments of uncertainty (not too different from now).

Just considering the above it SHOULD be clear which side of the divide you would want to "back" in a fight - no?

Let me put it another way: For this basket to become a Buy basket, USD and JPY would not only have to lose a lot of steam, but AUD, EUR, GBP, and NZD (add CHF and CAD for the C12/C14 baskets) would also need to form some kind of "alliance" (i.e. a Coalition of the Willing...Anyone (wink!)?)

Now, am I saying this is not possible today? Hell no! This can happen suddenly (and if/when it does I will adjust accordingly - we saw that happen over the weekend with the Gap and all), but I would CONTINUE to be happy as long as the fundamentals indicate that the current sell basket MAY remain intact.

Ya dig?

Ok - I'm off to get a few Zzzzzz.

Regards and Stay fluid,

Ty

C5 H1 short 0200 GMT

Just some quick pips with the short back to the long-time Monthly low as a Take Profit area.

Dave

That should be a very happy short at the moment.

That's how we roll.

Regards and Stay fluid,

Ty