Three Strikes And You’re Out

Pretty quiet all around today but as some of you rats are sticking around and are paying attention (thank you captainboom) I decided to wrap the week up with a final update on our current YM campaign. Let’s see where we are:

So this is a very interesting one. First up it doesn’t look like we are going to produce our required 1R within three candles. And that means unless we paint 16455 today (and close above it) this campaign has run its course and we’ll probably be cutting out for around 0.7 – 0.8R (while I’m typing this).

Now if you’re paying attention then you also notice that we’ve just produced two inside periods in succession and you all know how much I love those. Today’s high is one tick below yesterday’s and I would use the latter for Monday’s trigger (or Sunday night if you are around). On the downside we’ve got 16,321 as our short trigger. The range of today’s candle thus far is 104 handles – on the YM that’s 104 ticks. So use that to calculate your exposure on our handy futures risk calculator. Select the YM contract, add your account size, enter 106 as your risk (104 plus 1 top/bottom respectively) and Bob’s your uncle. The saga continues…

But the good news of the day is the greenback. You surely recall the inside day entry I pimped yesterday (assuming you were a sub – sorry folks) and that I modified our long trigger to our NLBL at 81.27. That puts our risk at 40 ticks plus 2 and thus our 1R mark is at (drum-rolls):

81.69 starting from the NLBL – if you took the IP-L trigger then do your own damn math 😉

What I really like about this campaign however is the context. As you can see the dollar just breached two weekly SMAs and although I’m not betting the farm it’s potential technical support we may be able to enjoy. The fat lady hasn’t sung on this one and what really matters now is what happens here starting Sunday night. But heck, we got a good technical entry near an important inflection point and that’s better than a kick in the shin.

It’s been another rough week but by being disciplined and vigilant we managed to grind out a few R and most importantly – we didn’t get trapped either on the up or downside. I call that good trading and with that I bid you a smashing MLK weekend. Crack open a cold one, kick up your feet, and get your groove on. Martin had a dream!!!

It’s not too late – learn how to consistently bank coin without news, drama, and all the misinformation. If you are interested in becoming a subscriber then don’t waste time and sign up here. The Zero indicator service also offers access to all Gold posts, so you actually get double the bang for your buck.

Cheers,