Quote:
Originally Posted by Ray_1
I took a trade at the GU.
An OB formed which resisted a trendline and close below the resistance level.
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That's well spotted Ray
Just be careful how you play these when the environment slows down a little & the psychology isn't so stretched.
In aggressive one-way traffic such as we're witnessing recently, it's not uncommon for the majors to print excessive (outside) intra-day range measures.
Today the Cable has printed 130% of it's average days range, to the 1.7781 lows. The p/b you took allowed a measured (1:2) risk reward play if you timed it ok & in this type of scenario, is just about a no brainer play.
In more sedate periods of activity you could get caught on the blind side as New York desks come to the table & possibly reverse the directional flows on order driven trade.
That's when it pays to take note of the average daily moves & where the percentages are at as NY comes into play.
Jimmy's 1min-15min combo visuals would also have assisted pretty fine on your continued short trade though
