High probability Trading With Forks And Options
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.
Please help me spreading ForkTrading by Likes & Tweets - It cost's you just a second or two for clicks below...Thank you §8-)