Captain_Walker

USDMXN (Weekly or Daily) Long or Short.

FX:USDMXN   U.S. Dollar / Mexican Peso
USDMXN on weekly and daily charts are approaching critical positions. Some key features -
On weekly:
1. Price is approaching or could approach an important trend line .
2. 50, 100 and 200EMAs have been separating, suggesting the trend still has strength.
3. On there is some sign of increasing bear strength on the weekly looking at the (red) Aroon line.

On Daily:
1. Price has fallen through a band of support.
2. There is resemblance to a (distorted) head and shoulders pattern.
3. Price has touched the 200EMA and made an initial bounce.
4. The Aroon (25) is now dominant for the bears. Therefore this time momentum leads to an expectation (not a prediction) of more downside.

Am I long or short. Neither. I'm stalking. Why? The position in my estimation is too risky to go long or short. Yes - price may do some interesting or unexpected things - and noobs may go 'coulda-shoulda-woulda'.

What am I stalking? I'm looking mainly at price on the Weekly. If price falls below the trendline , I'll cautiously reassess the situation with a view to going long. Why long? Because this is where trend strength is. However, I can't say what I will think in advance because, I do not know what the market will look like at that point.

If the Aroons on weekly show a bear market and price falls below the trend line , extreme caution will be required. Price could well fall into an area between the 50EMA and the 100EMA, below the trend line , at a level of support.

What if I miss the boat? I don't care!! I'm not into playing cat and mouse with the markets. If I'm not losing anything, I'm actually winning. So 'missing the boat' is a good thing. :)
Comment: Now at an important level
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