Are all levels the same?

About three weeks ago a rather fantastic level came up and poked me in the eye. It was USDJPY 111.60/80

It was pre FOMC minutes and i got hurt because it melted like a hot knife through butter. Nice one.

We are now approaching this key level again so I ask you. Is it still a level to expect buyers ? The answer is yes. Will I be buying down there after new obstructions to the US tax reform circus? Yes, but much smaller than three weeks ago. My job as a trader is the play the probability of what is likely to happen whist hedging my risk to zero. That is it. Nothing more. I can not predict anything. That’s a given but I still meet students who think it is the holy grail to being a profitable trader.

Why am i buying? Look at the chart and see. 111.60/80 has stood firm then broke, then consequently stood firm – just like a marine. Look at January and February, look at September and October. Do you see ? If what i see is obvious then the market sees it. That means Goldman’s, JPM and DE Shawe can see it. So can Renaissance.

Back to the question. A level is not a level when it breaks more times that it holds. That is my opinion and it has served me well.

Good luck

Patrick Reid

Swapped the TV screens for the trading screens.
Philosophy: "Define your risk, only then can you ignore it"

Read how Patrick got into trading here
Patrick Reid

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