Wednesday 16th of September 2020

Hope the FX markets are treating you nicely this week.

I’ll admit, I don’t really have anything on watch for today.

I had USD/CHF on my watchlist yesterday, however I’m really struggling to argue in favour of its higher timeframe stack. I don’t believe it fits my trading plan therefore I removed it form my watch

GBP/CAD has now moved far enough to no longer be a position I’ll be interested in, even if it comes back inside the zone.

That leaves me with

Daily Watchlist

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GBP/NZD

On top of having my 4h entry, I have two additional entries available to me, I’ll be looking to take a scale in on this position once the price breaks above the 50EMA. That’s one of my scale in. The second one, is a classical break and retest of the 4h 50EMA.

These two scale in strategies, aren’t very complicated, more a question of trend following, which is why selecting the right original entries are key to me

So here’s a quick screenshot of what I am talking about

https://www.tradingview.com/x/ADioNEGH/

The

The 1hour 50EMA is being quite strongly respected at the moment, and the price action is now forming a rather clear wedge pattern.

I will wait for a clear break to the upside (above the 50EMA and of the wedge pattern) before placing an order above the 1h 50 EMA

In terms of the 4hour scale in, here’s what I’m looking at:

https://www.tradingview.com/x/xKzrmd18/

I will want to see once again a break of the 4hour 50EMA – I require at least 8hours above the EMA – before placing an order for a potential long.

All of this, is of course based on whenever or not the position decides to break to the upside and not to the downside

That’s my daily watch for today, I only have GBP/NZD.

Book wise…

I’ve finished reading, “How to Think Like a Roman Emperor” by Donald Robertson

And I’m now reading a fiction novel, so no need to share that, however, I’ll keep sharing parts of “How to Think Like a Roman Emperor until I finish my current “relax book”

So here’s one short and concise quote from Epictetus

“It’s not things that upset us but our judgments about things,”

Epictetus

I truly believe it’s a key thing to remember while trading in the market!

Tweet wise…. Here’s my favourite of the day

The art of trading is the skill of taking & managing risk, not predicting markets.

Great traders aren’t great analysts, great at finding value, or even great at building strategies. They‘re great at executing the risk process from start to finish, and round again. pic.twitter.com/KoYVwy0Jvf

— Steven Goldstein (@AlphaMind101) September 16, 2020

Not the biggest fan of the description, but I really like the risk Process Cycle hence why I have it here

That’s why I’ll add a second one 😀

You can do everything right in your process and still lose. That's trading, markets are near random.

However the self-recriminations, anger and frustration which follow can be self-destructive.

Try to view it like a coin-toss. No one beats themself up for losing a coin-toss. pic.twitter.com/hn78GaHkOb

— Steven Goldstein (@AlphaMind101) September 16, 2020