What fun would trading be if we didn't stem up a bit a controversy every once in a while. Now when looking at the higher timeframes everyone is calling for a long on the GBPAUD based on the previous level of structure that we're coming into. Me...well I took a short position this morning at the 86 even handle. Seeing how more than 80% of traders fail I have no problem going against the grain especially with I can back it up with a valid case for entry. Although my initial trade was on the hourly timeframe, the chart before you is of the 15min because within the move that we've seen today, the market is offering traders of the 15 minute timeframe a second chance to get involved in the form of a 2618 setup.
Back to the initial though process of getting short, In this mornings Training session, I did a lesson on the different type of divergences. Regular vs. Hidden. While showing them an example on the GBPAUD I actually stumbled upon a trade that looked like a great opportunity. So I took it. (For those of you in The Syndicate program Jason broke down this trade in WARROOM as welI.) What I saw was a standard trend continuation trade with the RSI being overbought and the presence of hidden divergence on the hourly timeframe. What I see on the 4 hour and daily charts doesn't scare me much as we've pushed past what I would have considered the reversal zone IF that structure level was going to hold. The test and hold of the 1.8400 level (w/rsi OS) is something I'm aware of, but my I don't need a push beyond that level to secure profits. With a risk/reward ratio of over 1:3 this was a no brainer hence my aggressive entry this morning.
I know I'm going to hear from you guys and I don't mind having the debate, all I ask is let's be professional and be open to the fact that in any market there has to be buyers and sellers at the same price level. Sometime's I'll be right, sometimes you'll be right. As long as we're all making money at the end then it's all good. So know strategy bashing please for you trolls out there.
Back to the initial though process of getting short, In this mornings Training session, I did a lesson on the different type of divergences. Regular vs. Hidden. While showing them an example on the GBPAUD I actually stumbled upon a trade that looked like a great opportunity. So I took it. (For those of you in The Syndicate program Jason broke down this trade in WARROOM as welI.) What I saw was a standard trend continuation trade with the RSI being overbought and the presence of hidden divergence on the hourly timeframe. What I see on the 4 hour and daily charts doesn't scare me much as we've pushed past what I would have considered the reversal zone IF that structure level was going to hold. The test and hold of the 1.8400 level (w/rsi OS) is something I'm aware of, but my I don't need a push beyond that level to secure profits. With a risk/reward ratio of over 1:3 this was a no brainer hence my aggressive entry this morning.
I know I'm going to hear from you guys and I don't mind having the debate, all I ask is let's be professional and be open to the fact that in any market there has to be buyers and sellers at the same price level. Sometime's I'll be right, sometimes you'll be right. As long as we're all making money at the end then it's all good. So know strategy bashing please for you trolls out there.
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