Merry Christmas to all of you who celebrate it. May these holidays bring you joy and happiness.
Now to the business, the trading business. We have the right price action conditions at the wrong time.
For many trading instruments, the last week (Monday to be precise) was very volatile.
Such large-range days we saw in currencies, indices, metals, energies and so on mean a lot of orders were executed - stops, shorts, longs. Having in mind that most of those days ended like Long Nose or Equality shapes we can conclude that many participants are now out of those markets. That is great news because now there is a huge outstanding interest waiting to enter again. And that creates a possibility of good market movements.
Unfortunately, all this is happening around major holidays with many non-working days and that disrupts our analytical abilities.
Usually, I am not trading between Christmas and New Year but maybe this year it will be different.
My strategy will be to focus on those instruments which after the large-range Monday made inside days or very small-range days. I'll be looking for a false breakout of one side of those small-ranges.
I don't have any specific ideas to discuss. Instead, I'd like to show you a short compilation of 2020 in charts.
See you in the next year!
Founder of Piece of Trading
Trades mentioned here are either taken or will be taken by the author if the right conditions appear. They are NOT recommendations nor any of this constitute investment advice. Please read the Risk Disclaimer
Seasonal indicators courtesy of Larry Williams, ireallytrade.com. Charts made with TradeStation®. tradestation.com
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