Although I don't usually deal with currencies on this blog, two other potentially significant events happened today. Both the DX (US Dollar index) and the EUR broke out of daily channels, the DX to the downside and the EUR up. These also are bad news for the bear case.
Incidentally, the Trendline/Oscillator System works in just about any market, including currencies. The only reason I don't trade those markets is time limitations.
Putting the picture together, right now it looks like the ES lows of last Tuesday could be it for a while, notwithstanding normal corrective activity. Hard to swallow given the macro economic backdrop, but it is what it is (which is a 2 ton elephant that does what it pleases).
Still holding long from ES 1032, moved the Stop and Reverse to 1060.
Really wanted to take profits and reverse the trade, but fought my instincts by telling myself to remain disciplined to the Vindicator.
ReplyDeleteNot only did the Vindicator save me some apples, but more importantly, helped identify a leak in my trading. Thanks, Al.
Your welcome. Glad it worked for you.
ReplyDeleteAl, for learning purposes, I wanted to know at what point you would have exited the trade last Tuesday after it dropped a little over 10 points from entry. In other words, what kept you holding?
ReplyDeleteThanks in Advance.
This is part of the system I haven't written up yet, rule is to set a stop and reverse at high or low preceding signal or at 1 ATR from entry, whichever is more. In this case entry was @ ES 1032, low preceding entry was 1002.75 and ATR was @ 23.00, so stop and reverse set @ 1002.75.
ReplyDelete