One of those days. Markets stay in very tight ranges. The only potential play I spotted was GBP/USD. I really liked the bullish action in the morning and was willing to enter long at any price dip. There was a potential entry at 1.15 pm, but the price retraced just too quickly. I assumed other traders having the same thought as me - all waiting for the opportunity to go long as well. It was impossible for me to issue that signal quick enough to you guys to take advantage of the situation. So I waited past 2 pm. And I usually don't favour entering new positions after 2 pm London time as there is so little time left for any significant price movement to happen or to recoup any losses if price doesn't move as predicted. Hence, a zero action day.
GBP/USD 5-min chart
Market pulse:
"There is nothing to alter the trend of carry trade at this point. If there is no clear signal of future rate hikes, people will continue to put on carry trades, and that will weaken the yen.''
FYI, I also include USD-JPY and EUR-JPY markets in our trading portfolio. I am not biased and willing to go either long or short depending on the daily technical situations. Let's be patience as opportunities will present themselves when the time is right.
3 comments:
Hi Lloyd, great blog you have here.
Just a quick question on today's action. At what point or how do you decide that the day is going to stay in a tight range?
Hi,
Good question. Basically, you can kindof sense it when the price refuses to tick frequently for a couple of hours. Technically, I use a breakout system to make sure the market is relatively active before participating.
Thanks for the reply Lloyd. Good luck trading.
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