I bought UUP after the close today as it hit my pullback target. There are 4 reasons that I like this where it close at, providing a nice cluster of support. Yes, I know Sunday night will change everything with the news, but as a trader it's important to be aware of macro news such as this, but not let it keep us from trading, because we're afraid of what might happen. Inaction can be just as bad as far as I'm concerned because if you do the analysis and your analysis suggests a chart is going to move in one direction and it does just that despite any news…then what have you gained? Yes you were right but you didn't profit from your analysis.
I seriously dislike that the markets are so correlated and move on news and “perceived” news, but it is what it is and we have to adapt as traders. The markets will always be changing and it's our jobs to change with the times.
20 years from now our jobs will be teaching our personal robots how to trade so we can go out and enjoy life. lol
OK. Back to the points of confluence:
- lower bollinger band
- 50 day ema
- chart support (dashed line)
- RSI 40 level support
Watch as this FX trader shares his 10 rules for being a profitable Forex trader.
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