Trading the Trend with Strong Weak Analysis

If you want to make money on Coronavirus stay short AUD, GBP is not looking too good here either

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Those numbers on GBP are unbelievable. I guess it’s been a time since you didn’t see a -14%
Now how to open a short position after all this move? My guts keep me away from it, but I wouldn’t open a buy neither.

Not easy to trade during a crash and trying to find the bottom.

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Australia RBA March Interest rate is 0.25%. The Reserve Bank of Australia slashed the cash rate by 25bps to a new record low of 0.25% in the second emergency move, joining peers around the world in a bid to mitigate the impact of the coronavirus.

now we should trade specially AUD like an investor. AUDCHF current latest lowest price is 0.53 and at this price buyer have very limited risk to invest here as a long term investor, so don’t try to catch Short positions, bcoz 0.53 wil not go 0.1 or 0.2 .Trade safe and be safe.

This is not a comparable situation to anything in modern history. Advising people to go long on a currency that was already weak and is severely impacted by current world events because it’s at an all time low is not low risk. In 2008, the Aussie dropped 30% in 3 months, the same move here would put it well below 0.5 before the end of April. I wouldn’t rule it out the way things are going, a second breakout in China seems almost inevitable eventually.

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It’s Australian Dollar not a stock price. if AUD goes to 0.2 or 0.1 means AUD has lost his currency strength , and at this point any country currency makes self independent decision to stable his currency strength.

and the US dollar comes storming into the top spot, wild ride for anyone trading AUDJPY* I hope you lock in some profits and did not ride it all the way to back to breakeven

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I hear ya about stop losses…losses is key word. I like putting in a 100 PIP catastrophic loss if something happens like the 2015 Swiss Franc debacle. Otherwise I watch the trade and most sudden pullbacks are not going to the 100 PIP level. Any SL within market structure is captured by the Market Makers almost every time. I can’t fly wihthout some type of Sl, but when I stopped using them according to structure or bare number of PIPS, I started making money.

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There’s so much volatility right now that we see 100 pips moves in minutes literally.

100 pips cannot be considered catastrophic at the moment.

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Lately my stop is either no stop and just watch like a hawk, or a fairly tight one. This has been a really good week, 60% plus on my account, mostly on the crude. I work in exploration, so while watching multiple trades make 500 dollars profit each, I was watching my livleihood go down the drain. Happy and sad at the same time, on different timeframes. These are funny times, but I am not actually laughing …

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Friday saw a rally in the weak currencies as US stocks fall again.

I think about how it must have been to live in Germany or Japan in the 1940’s and saw your economy and nation destroyed by war. But while our economy is being destroyed by this virus, our countries and infrastructures remain intact, when this is over we will recover quickly, it just might be a different world

Keep the faith

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We are seeing some divergence between AUD and US stocks as stocks continue to fall but AUD looks to be stabilizing

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I just found this thread today,am practically av little experience as i still demo trade.For clerity sake.Those this mean its best to buy d strong like usd against aud and gbp?

Hey there

I have been following this method for a while and it works for me. Everyone will trade it differently however as a short seller I always short the weak currencies against the strong ones. This strong weak table shows you the trends (what is strong and what is weak) and you can see that in the charts (look at the H4 time frames for example).

I short on the pull backs and enter at areas of value and then ride the trades down for a 1:2 RR or 1:3RR…unless the markets are falling heavily in which I use an ATR based trailing stop.

There is a video where Dennis explains how to calculate the chart however he updates this thread daily with it which is great. I have this page bookmarked.

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The Pound is on the move today as US stocks are set to open up big, strangely Gold is also set to open up big, it is an upside-down world we live so trade accordingly

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Welcome to the thread, we match the Strong with the Weak and trade in the direction of the trend, We are navigating through this Black Swan event so I would advise sticking to your demo trading until markets settle down,

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Thanks. :hugs:

big up move for stocks today as President Trump talks of reopening the country, Currencies are reversing,

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as we pull back from extreme levels Top Trade AUDUSD* so far has been a complete bust, but could it come back

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One would have to wonder about D J Trumps state of mind sometimes?
I think Dennis’s Black Swan should be followed untill the fox gets him.

State of mind, have you seen Joe Biden, enough politics there is an opinion thread if you want to take this further