Morning all. No trade for me this morning (actually I have taken 4 trades using other systems) on my early morning discretionary ‘less is more’ challenge.
Thought I would put a chart and a few points.
Up above is the 5 min cable chart. At point 1 we can see that we had quite a gap on the Sunday opening. Its very unusual to see such a gap and I was impressed to see how it closed it so rapidly. My colleague and I discussed this morning and were interested to see how many currencies gapped on Sunday evening and then went on to fill their gap. The Sterling crosses had some very nice gaps. I already have a couple of other Strategies for Sunday evenings but I think we may also investigate Sunday night gaps in Currencies.
Anyway you can see the gap at Point 1 which then rallied during the night to fill the gap. At Point 2 it printed a reversal Hammer which would have been a nice place to go short (had it not been in the middle of the night). By the time I cam to look at the charts this morning I thought we were withing a triangle…but I had no idea which way it could break. Nothing looked terribly clear to me so I decided to sit on my hands. Price did indeed break down (so invalidating the continuation pattern of the 30 min triangle) but there appeared to be good support around the 16240 area.
Learning point for me to remember: Being flat is a position.