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
Philosophy: "Define your risk, only then can you ignore it"
Read how Patrick got into trading here
- How to trade: A LEVEL - August 4, 2018
- USD mixed – a bit like me - June 5, 2018
- What is the market focused on ? Over to you trader. - May 29, 2018
There are also 100 and 200 DMA both at this level. Powerful combination…… Patrick, can I ask you, how do you put stop, if you buy there….. ?
Hi Prutar
My stops are normally around 20 ticks for a regular clip size. In this case i would look to buy around 75’s with a stop around 50. That’s a little bigger risk than usual but i would cut my size accordingly.
Hope this helps !
Patrick
Yes, it does. Thank you….
No problem.
He’s a cool dude our Patrick 🙂