First, some actualities.
The market printed a D and a DDI to the upside.
The first lesson is: You do not trade what you think, you trade what you see.
And how handy it is that my indicators have visual capabilities way beyond any human being.
The God Awesome indicator called the swing to the DDI-t high an end line (in purple) and plotted S1 and S2 down below. It also highlighted the sharpies at the very top. The red 2×2 preliminary topping warning was from this indicator as well.
Of course you already knew about the swing buy level being at 1.1462 – thanks to my _RSI2_ plots (see previous post).
The 88 Luftballons indicator called the D, plotted its box, called the DDI, put out the omega signals, showed the cyan backed time out resistance, the D to the downside – with its box, etc.
As a human trader to maximize your potential, you need burn some principles inside of you.
Principle #1: Load Up and Let It Run.
In order to invest in a direction, scaling in is advised inside your shopping area. The maximum, invested size is based on the available equity, and my 88 Luftballon’s stats screen, can provide you with this information. (M.L.=Maximum Lot size based on 1:200 leverage)
The positions would have to be opened without stop losses. Your flash crash protection should be a Ratio Hedger running in the background.
You should set a generous target to an obstacle near to what the market is capable of reaching to on the given day (see my 15-min ATR Targets) routine. The current swing lines are always players.
Upon receiving the any D print (SD, D, DDI, DDI-T), you should adjust the positions to and “other than 0”. This means for instance with the EUR/USD that the longs would be set say 0.1 stop loss and the shorts 2.0
With this move you instruct my Smart Trail Stop to start handling the running positions as “game” which would result in a trail stop being dragged behind by 1/2 fluctuation size (16 pips).
You should also consider closing out some of the positions inside the D-projection boxes.
Between the 2, 2x2s you have a channel looking thing going on. Price is back in the oversold, and this looks like a bull flag.
There are certainly things pointing to 1.1416, the lower reversal zone showed by the Comfort Levels 4H indicator, so does the 15M ATR Limit, not to mention my Market Maker Lines DC (plus the Projected Distance line above on the 4H chart).
We have to take it one step at the time. We think about the possibilities, but we do not fight the market. At this point we need a D, any D on the upside to go short again. Until then, don’t short!
The current pullback to the Green River is a mean reversion, and this is way more bullish than bearish.