- Technically the MKT is vulnerable to the offer. On the SELL side accept all BREAKOUT, FADE and REVERSAL signals. The MKT is on edge and any negative signal, especially below the previous session high, is an opportunity. Anticipate a price "zone" around a major resistance point to FADE. Have a plan and be ready. If your stop gets hit and the MKT does not immediately follow through, consider re-entering, even doubling up if there is structure to define low risk.
- On the BUY side REVERSAL strategies can be executed off of major support levels but preferably after an emotional sell off. This is an aggressive strategy and any profits should be realized at the previous support failure points. Avoid DP FADE BUYS even with confirmation, as this is more likely a plateau for a BREAKOUT SELL strategy. UP BREAKOUT strategies are not recommended but do have a better chance of succeeding than a DP FADE.
Today's PRICE MAP Performance for CD
Wrap Up
- The MC Value of -7 identified a strong BEAR TREND Market State in the CANADIAN DOLLAR today. With the R Level at the UP, traders should look to get short the market below this level. In these TRENDING states, the Moving Average crossover tactic works well and helps confirm the negative tone of the market. The market bounced off the UP at 4:30 am indicating that this was a level of structural support. After the MA cross occured at 7 am followed shortly after by the breakout below the DP, traders should have accepted this SELL DP BREAKOUT strategy with a profit target at the DT2. The market had a "knee-jerk" correction around 7:30 that failed below the DP and then continued lower, stabilizing at the DT1 and ultimately attaining our downside target at the DT2 around 8:30 am CT. By identifying the technical state of the market and which tactics are most applicable in that state, our traders were able to capitalize on the big sell off in the CD market today.
