1.3607 – 11:07am NY
This bearish move was firmly technical on the 1Hour with the exception the burst failed to validate new resistance at 1.3803-24 and also 1.3916. Rebounds target 1.3724-.3793-1.3849. Our first profit target (pt1) is satisfied at 1.3714 and pt2 is 1.3337-1.3263.
We hope to share our next entry in advance but may follow the price action and trade to PT2. Currently we have no position and as yet we did not participate in this trade. Immediate lower compression support is at 1.3585. Should it fail, any continuance could be aggressive but we prefer to see some consolidation if not a decent rebound.
If 1.3631-37 caps a second rebound off of suspected support (1.3585), then continuation may occur.
One type of day trade we will cover focuses trading the 1Hour time compression of which profit targets usually take 2-5 hours to be satisfied. Stop Loss (SL1) levels are usually no more than 35 pips with profit targets 2-3:1. In this category we do not dollar cost average. Should we suffer a stop loss – our objective is to allow illiquid consolidation and wait for a new entry.
Our other style of trading is based at the 15 minute and below for bursts that consume 3-20 minutes duration with stops less than 19 pips and profits equal to SL1 or near 2:1. We do not use a second level stop loss value and we do not dollar cost average in this category. From time to time this style of trading may involve a tight stop less than 13 pips which if hit will require automatic reentry 4 pips greater (lower/higher) than the initial entry value with the same PT1/2 levels.
Britt
