Our winning patterns for week ending 2020-11-06
Our past trading week comprised 2 days only – Monday and Tuesday. All because of US presidential election. We stopped trading as counting votes make market very volatile. Situations like this show how important is having a good trading strategy and discipline. Some might say that it was a great time for quick and big profit. We say it was a fantastic time for great and quick losses. Emotions rule currency market and electing a president of USA is so important that one news in TV can wipe your trading account clean. On Monday and Tuesday we performed only 3 trades and as usual we share with you our results so you can compare your trading strategy with ours. Enough talking – lets see trading in action.
AUDUSD Support on the 1H chart. This was Monday trade. We found support on the chart and after checking it against S-V3 indicator and US dollar index, we were confident to open Long position. Please notice US dollar index being at the top of S-V3 oscillator. This is a sign of USD price getting weaker. On the other hand, AUD price is on the bottom so there was a high probability of price going up.
USDCAD USDCAD Bearish Flag on the 1H chart. This price formation can be tricky to trade, but with suitable tools you can correctly predict market direction. Bearish flag is a continuation pattern and S-V3 confirming that clearly. Smaller time-frame line is far apart from the bigger time-frame line. This behaviour shows that selling is paused but will continue soon. Knowing that we have opened short position and made almost 300 pips.
USDCHF Channel on the 1H chart. This one we qualify as a channel, but someone could argue it is a bearish broadening wedge. Either way, it was a price drop in preparation. USD was struggling to go higher, and if USDCHF chart wasn’t convincing enough, USD index chart showed that weakness very clearly. Please have a look on S-V3 indicator – you can see USD at the top of oscillator for quite a long time. US dollar index explicitly showing that last price up-movement is invalidated by S-V3. With that in mind we opened short position and enjoyed price drop.