Joined Apr 2017
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Status: 38737526 / 29052019
|965 Posts
Uncertainty will always be part of the game whether there’s an event or not. The best thing to do is to always put SL and/or TP in every open trade ...
What goes up must come down and vice versa —> Use a mean-reversion strategy to play the market ...
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A trending strategy can only be used in one market condition, while a mean-reversion strategy is applicable whether the market is trending or ranging because a trend will eventually make a correction ...
Joined Apr 2017
|
Status: 38737526 / 29052019
|965 Posts
Two components of a successful mean-reversion strategy:
1. The Equilibrium: Anything above is sellable, anything below is buyable ...
2. Overbought/Oversold indicator ...
I think we are at the edge of big correction in dolar downside trend. Firstly there are some good information realated to covid so market can anticipate that FED will not act as much as could. Secondly we can see the bigest inflation expactation since April 2019 so market can start thinking in some hawkish way. I think this scenario can happen.
Really interesting i would be of the opinion a correction is coming soon too. The seasonals are supporting a correction too.
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As you can see this scenario is still actual. EURUSD sentiment in short term is bearish and we are going to reach 1.21, maybe 1.20. It depends on inflation data.
I think INFLATION will be the most important indicator in next months which will determine dollar price on market. If inflation forecast will go up, it could trigger EURUSD move below 1.19.
There 4 identifiable trend-conditions: 1. Change of Trend, 2. Trend Correction, 3. Trend Resumption, and 4. Trend Continuation. The mean-reversion strategy is best applied during a trend-resumption period ...
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Wait for a less-than-50%-correction before playing a trend-continuation ...
