Monday trades

Typical low-volatility Monday trading. First trade we had a was a beautiful bounce on G/U off of previous 15min low. Literally no floating drawdown. The trade would have been good for 20+ pips.



Second trade today, again a bounce off of strong support on U/CAD. The Loonie broke the support initially by 5-6 pips on very low volume, which signifies a fake. And so it was, buying came in and the pair bounced for 10+ pips. I got out as it stalled as the Loonie is a really slow mover.



G/J established a strong support too. I didn't take any of these trades, since I was already in the Loonie. One of my rules is to have only one position open at a time (due to strong correlations among all currency pairs). All arrows depict potential longs, all good for 20+ pips with minimal floating drawdown.



NY morning brought some USD strength, and yet, E/U bounced at a 15min support.



Finally, a fake breakout. E/J collapsed rather fast to support at 123.00 - round number coinciding with previous low. I took a 20 pip loss here. However, look at what happened. Price bounced twice between 123.00 and the new low, but failed to continue lower and created a bullish engulfing candle. Seeing this both on E/J and G/J I went long for 15+ pips. The proper way to play situations like this to fade the breakout below support. This however, depends on volatility and experience. Some traders would reaverage upon the breakout, but I am strongly against this as it skews the risk-reward ratio.




-Tyler