RUT is screaming to the upside - again.
Where there Indications to it? I mean, we are never able to "predict" markets, right?
But what we can do is, apply a functioning method with rules and put together the puzzles.
Here's how I've done it in the Russel:
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See how I analyse this market and how I trade it.
Please leave me a comment, critics or your questions below the video, thank you!
Here is a detailed explanation how I was playing FXE lately:
No matter what trade you do, you have to know in which context the market is.
So I took a bigger picture of the market.
- uptrending market
- messy...I must really have clear tells to do something here
1) The big "Context" Fork is catching the Pendulum Swings (see my last posting on Swings & Pendulum Swings in the FREE FTG. The Free ForkTradingGroup is available about one week after taking the ForkTrading BLUEPRINT...read the MESSAGE FIRST!.
A closer look
Holy moly - I missed the trade?
...well, yes and no.
I completely forgot to observe, because I had other work to do.
So price fell down, I missed this trade and observed, that price was right at the L-MLH.
NOW I was really interested to take a counter trend trade.
I opened my RiskReversal, just to trade up to the yellow CL.
So I initiated the trade.
First, price was going in the right direction, towards the CL.
Then it reversed on me and came back to the L-MLH again...
But since I know what it means, when price is at the L-MLH, AND I was not long the underlying, but playing it with a Option strategy with edge, I was totally relaxed and confident, that price has a great chance to reverse again.
The end of the story was, that the high probability ForkTrading rules worked out once more.
Price reached not only the yellow CL, but as you see, also the white...talking about test/retest after a CL break.
I highly suggest you study the sequence a couple times and try to apply it to the chart, while you reading the rules of the ForkTrading BLUEPRINT (read the message FIRST!) parallel to do your analysis.
This is how you REALLY learn to earn.
Oh...by the way - Below the last chart, you see the closed position, just in case you need some context for the Risk/Reversal.
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The zoomed CL indicates that price want's to go higher.
If you already are familiar with the rules, then you know what to expect next.
Yes, the pullback to the CL.
(In case you have not yet made it through the free ForkTrading BLUEPRINT, then feel free to give yourself a boost and learn the ForkTrading rules here. ATTENTION: Read the message FIRST!)
However - since this is still a "living" bar and price could still close below the CL, we have to be careful.
A close above, or below is completely different and both closes have their meaning.
We need to act accordingly.
My best advice here: There is no need to rush!
Price will do what it has to do and we observe.
Is there a trade cooking?
Yes there is.
But first we observe and switch to hunt mode. The ForkTrading Method will tell you when we have a high probability trade in front of our gun. So let's be patient and learn from the movement of this creature and stalk it.
I will follow up on this - stay tuned.
You learn the most if you participate and articulate your ideas.
So feel free to post your thoughts and comments to bring your inner trader to live.
Further analysis on the EURUSD:
Don't forge to grab your free ForkTrading BLUEPRINT.
Price has reached a extreme at the U-MLH, where a pullback was expected.
The move to the Centerline had a very high probability of over 90%, and it played out like textbook.
Bitcoin is now at a critical stage:
If price falls below the Centerline, I first expect a pullback to it, then a further down move to the L-MLH.
If you already where going through the ForkTrading BLUEPRINT, then you know how this potentially can play out to the downside.
Send me your comment and participate
Price is trading below the yellow CL.
I expect price to reach at least the yellow L-MLH, which should bring me at least a profit of $200 per lot.
The nice thing in this trade is, I have a lot of upside room, compared to a directional play!
The downside is, Theta is negative with about $1.70/day.
So I have to observe how the trade evolves and manage accordingly.
Write me your thoughts and questions below, thanks!