Euro / U.S. DollarShort
EURUSD: First red day up high into the high of the week
Hello everyone and welcome back to my profile. I don't typically share templates every day, because I'm trying to select best opportunities that can move fast during the further 1/2/3 days.
Please do not forget to support my work with a like, and comment if you have similar or contrary opinions to understand as well your point of view.
EURUSD is actually up high into the high of week, high of month, high of year, it's January and is the first month of the year, is the opening range of the year.
There is a great chance to see a reversal market from the current level, if it's going to setup correctly.
However, as I always say, I'm not here to predict any directional move, because I'm a professional trader and I don't do entertainment with trading, trying to gamble my money in useless predictions. What I'm always looking for, are setups, which they repeat over and over again.
To understand better the logic behind my thesis, let's have a deeply look into the week..
The previous week, overall, the market has been trading long, higher high on Wednesday for a 3 days dump and pump into the week, I wouldn't counter trending such a strong market.
Monday, opening range of the week, the market broke the previous weekly high and stayed in breakout. Other times frame traders and big players are involved.
Tuesday the market pullback on the previous weekly high, eventually stopping out breakout traders long from that level, closing kinda as an inside day, which I consider part of the consolidation process up high.
Wednesday, the market broke higher, breaking out the HOW, HOM, HOY, closing back inside the range and closing as a first red day, which typically it can be a short signal if setups correctly during the further days.
Today, the market triggered short in, and overall is consolidating into the yesterday LOD.
Thesis:
My main view, currently, is pretty short, the lower low of today can a be a sign of weakness for this market, Trump speaking on schedule, market it may be very volatile today, that's why I decided to don't be involved in any market position.
The news release can obviously dump the market quickly straight into the LOW, or we can have a retest of the HOW for a consolidation and dumping during the next week (last week of the month).
If the market today breaks lower, tomorrow I will be looking for a sell high opportunity targeting the current LOW.
What about a bullish thesis?
Once again, I think that predicting is pretty silly and gives you 50/50 of chances to be right. What I'm describing is the possibility to identify a short setup in a market condition that can offer it.
A long thesis, would be absolutely still valid.. why?
Yesterday after the higher high in the daily, weekly and monthly level, the market dumped down into the low, and went in consolidation. I cannot exclude a 2/3 days dump and pump for a range expansion to the upside.
That means that I would be willing to take a long setup if the long thesis builds up.
I will be updating this post until I think the template will be valid.
Gianni
Please do not forget to support my work with a like, and comment if you have similar or contrary opinions to understand as well your point of view.
EURUSD is actually up high into the high of week, high of month, high of year, it's January and is the first month of the year, is the opening range of the year.
There is a great chance to see a reversal market from the current level, if it's going to setup correctly.
However, as I always say, I'm not here to predict any directional move, because I'm a professional trader and I don't do entertainment with trading, trying to gamble my money in useless predictions. What I'm always looking for, are setups, which they repeat over and over again.
To understand better the logic behind my thesis, let's have a deeply look into the week..
The previous week, overall, the market has been trading long, higher high on Wednesday for a 3 days dump and pump into the week, I wouldn't counter trending such a strong market.
Monday, opening range of the week, the market broke the previous weekly high and stayed in breakout. Other times frame traders and big players are involved.
Tuesday the market pullback on the previous weekly high, eventually stopping out breakout traders long from that level, closing kinda as an inside day, which I consider part of the consolidation process up high.
Wednesday, the market broke higher, breaking out the HOW, HOM, HOY, closing back inside the range and closing as a first red day, which typically it can be a short signal if setups correctly during the further days.
Today, the market triggered short in, and overall is consolidating into the yesterday LOD.
Thesis:
My main view, currently, is pretty short, the lower low of today can a be a sign of weakness for this market, Trump speaking on schedule, market it may be very volatile today, that's why I decided to don't be involved in any market position.
The news release can obviously dump the market quickly straight into the LOW, or we can have a retest of the HOW for a consolidation and dumping during the next week (last week of the month).
If the market today breaks lower, tomorrow I will be looking for a sell high opportunity targeting the current LOW.
What about a bullish thesis?
Once again, I think that predicting is pretty silly and gives you 50/50 of chances to be right. What I'm describing is the possibility to identify a short setup in a market condition that can offer it.
A long thesis, would be absolutely still valid.. why?
Yesterday after the higher high in the daily, weekly and monthly level, the market dumped down into the low, and went in consolidation. I cannot exclude a 2/3 days dump and pump for a range expansion to the upside.
That means that I would be willing to take a long setup if the long thesis builds up.
I will be updating this post until I think the template will be valid.
Gianni
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.