Although it has been 3 weeks since Brexit, I am still
adopting extra caution because price action is currently not favourable to how
I trade. Some currency pairs are at levels not seen for over 10 years. This
means that the support and resistance levels that I identify using my
methodology are less reliable. I would need to confirm their validity with
recent price action.
My trend following system was put on standby before Brexit when
volatility pushed the overall account exposure over the limit that I set for it.
Now I am simply waiting for volatility to stabilise and will resume trading as
soon as exposure drops below the limit. Risk management is the name of my game
and I take no chances when it comes to overall system risk and exposure.
Going into next week, I will be watching NZDJPY because this
pair finished the week right above 74.50 support. I am going to look for signs
of strong buying power above support to enter long. This could be a high risk
trade since Monday is bank holiday for JPY and Tuesday has GDT Price Index for
NZD.
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