It�s that same combination that inspired the trade(s) on the AUDUSD pair that I hauled up last week courtesy of Jimmy�s observations.
I already explained in post #422 that Art (one of the guys here) had a pop at it off 8230 & subsequently scratched it next day as it ran out of (initial) steam on the lack of follow through.
From a technical perspective, Jimmy�s supply-demand zone added juice to the overall theme of the price activity. However, Art added more juice to the pot by way of the fundamental & bias drivers surrounding this area on the technical map.
Over the previous w/end & into early week activity RBA�s Stevens was all over the wires jawboning & talking up a storm re; Australia�s apparent ability to absorb & manage the worst of the credit crisis adversely affecting the other major economies. His bullish outlook for Oz forward growth prospects & tempered credit fears offered a sharp lift to the $AUD.
Will the positive flows continue?
Who gives a sh*t.
All we�re (traders) concerned with is how fast & how aggressively we can milk the situation & grab our piece of the action before the next event theme/flavor hits the wires & wiggles its ass.
It�s not always exclusively about the technicals.
Sure, they offer a visual heads up to what�s playing out on the map, but it�s a direct result & representation of traders reaction & interpretation of the present flavor-of-the-day (event driver) working its way through the pipes.
Although price slipped back to a visible & confirmed support zone during Wednesday�s action, the primary theme & flavor of the week hadn�t dissipated. Traders were looking for a spark to run it back up to, & clear of, the years highs.
In these sloppy range play conditions it doesn�t usually take much to kick these instruments into gear. If you got your framework template mapped out, then you�re primed to react as & when the conditions dictate - & that applies to each-way directional bias.
That�s what prompted him to leg back in through 8190 (note the higher high-higher low confirmer stepping away from a s&r zone on the hourly reference?). He was simply using the positive event drivers + demand activity & matching them up with a simple, common sense technical play that anyone could identify with.
What I�m trying to say is, these s&r markers are simply one piece of our jigsaw. They might be the only part of yours, & if so then cool. As long as they keep you afloat & in the green, that�s all that really matters.
We choose to navigate the map using the common technical observations as a base or core foundation. We don�t utilize them as an exclusive tool.
They�re in place to offer us choices & options along the route.
Using all the available resources at our disposal ensures we maximize & squeeze every drop of juice possible out of each trade opportunity.
We seek maximum value-to-risk odds from every trigger & if it fails to trot, or our timing�s out of whack then we get out, re-assess & repeat the process ahead of the next opportunity.
But thats just us � you might have alternative choices & reasons for executing where & when you choose to, & that�s fine. Just as long as you stick to a pattern that works for you & you�re confident & comfortable executing in conditions you�re familiar with!
