DXY - Bearish OB on H1
Updated
Comment Ideas and/or any reasons why you would or wouldn't take this trade!
Going short on DXY.
Setup 1 [Entry on FVG]:
Sell Limit @ 107.219
S/L: 107.495
T/P: 105.476
Profit/Loss = 6.32
Setup 2 [Entry at OTE] (Lower-Risk):
Sell Limit @ 107.319
S/L: 107.531
T/P: 105.476
Profit/Loss = 8.69
Why?
- Retraced back up past 0.79 & 0.759( OTEs ) on Fib filling market imbalance left from previous sell
- Market imbalance left behind from previous buys (FVGs)
- Current momentum is Bearish
- Strong rejection from Bearish OB
Why not?
- DXY did not break market structure to make a new low - not required but good to have as confirmation for direction
- DXY has the potential to break bearish OB and create a new high - New low has not been made on higher timeframes
- Lower timeframes are not as reliable as higher ones
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Remember, only risk up to 5% of your account per trade. There are two potential setups for this trade so if you are going to take one, it is almost always better to place a lower-risk trade that you might miss than a high risk one that has a higher risk
This material is for educational purposes ONLY.
Trade smart.
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Glossary:
OTE = Optimal Trade Entry (Most opportune place to enter a trade)
OB = Order Block (Where price is likely to make a reversal)
FVG = Fair Value Gap (Gaps left when only sellers/buyers were moving price down/up)
Going short on DXY.
Setup 1 [Entry on FVG]:
Sell Limit @ 107.219
S/L: 107.495
T/P: 105.476
Profit/Loss = 6.32
Setup 2 [Entry at OTE] (Lower-Risk):
Sell Limit @ 107.319
S/L: 107.531
T/P: 105.476
Profit/Loss = 8.69
Why?
- Retraced back up past 0.79 & 0.759( OTEs ) on Fib filling market imbalance left from previous sell
- Market imbalance left behind from previous buys (FVGs)
- Current momentum is Bearish
- Strong rejection from Bearish OB
Why not?
- DXY did not break market structure to make a new low - not required but good to have as confirmation for direction
- DXY has the potential to break bearish OB and create a new high - New low has not been made on higher timeframes
- Lower timeframes are not as reliable as higher ones
--------------------------------------------------------------------------------------
Remember, only risk up to 5% of your account per trade. There are two potential setups for this trade so if you are going to take one, it is almost always better to place a lower-risk trade that you might miss than a high risk one that has a higher risk
This material is for educational purposes ONLY.
Trade smart.
--------------------------------------------------------------------------------------
Glossary:
OTE = Optimal Trade Entry (Most opportune place to enter a trade)
OB = Order Block (Where price is likely to make a reversal)
FVG = Fair Value Gap (Gaps left when only sellers/buyers were moving price down/up)
Comment
Price has retraced all the way back to one of our entries. (Opportunity to sell more)We continue you to hold; trade is still valid.
Comment
Prior to the FOMC statement DXY moved back towards our entry position, for those looking to increase their trade size, and now we're headed towards our T/P. Lock partials and keep holding!Trade closed manually
Closing trade on DXY due to interest rate increases - most likely to send US dollar strength up and hit the Stop LossComment
If you held on Friday you would've hit T/P1 and still been in profit now! $$Trade closed: target reached
T/P1 & T/P2 Smashed!!
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