I hope you all had a great weekend and were able to collect additional insights into your trading through your self review.
To keep you folks updated (in the large strokes) with my scalping strategy I have decided to do the FTMO challenge with it, where the aim is to do 10% return without having a 10% draw down.
I want to separate my 4 hour trading and my scalping, on top of that having two different funding companies providing me capital will diversify my holdings in the long run, which is beneficial.
Anyway, enough talking, let’s jump straight into my watchlist?
Euro Dollar is a set-up that isn’t the cleanest, the zone isn’t actually fresh, we’ve had a spike into it. After looking at it in more detail, there wasn’t even a single 1 hour close within it so I’ll be willing to keep an eye on this area.
The fact that the DXY is cleaner and still fresh makes EUR/USD a lot more interesting than otherwise. If we did not have such a clean set-up on the dollar index, I wouldn’t be looking at this currency pair for a trade.
There’s also two potential weekly stack depending on how far into the area of supply it manages to reach.
Kiwi dollar is another pair that has reached an area of supply. We’ve had it on watch for a couple of days and no 4 hour entry has presented itself. It has now been able to break the first zone we have drawn in to retest a counter-zone dating back to April 2019.
I’ll obviously have to wait for a 4hour script entry to be provided before taking a position.
The fact that both the DXY and EUR/USD show similar makes me believe we’ll either see a break or a bounce of these areas soon.
Oh and there’s a clean weekly stack too 🙂
Figured I couldn’t mention those three without mentioning Pound Dollar, after all, I have an English passport…
Pound Dollar is another pair I’ll be eyeing up these coming days, however unlike the previous ones it hasn’t yet reached an area of supply, it’s close but definitely not there yet.
We have two areas of interest, a counter-zone and a trend-line break zone. I’d prefer trading from the trend-line break. That being said, if my script shows an entry within the counter-zone I’ll be more than willing to take the short.
Both zones are covered by the same weekly stack.
Lastly but not least, dollar / Singapore dollar.
We actually had an entry signal friday at market close, the 4hour candle gave me a script indicating a potential entry.
I didn’t take it since it was Friday night at 11pm. I didn’t take it at market open either since I did not want to take a trade at market open, I prefer to wait and see what’s up before risking capital.
It would’ve been a loss, so happy I didn’t take it at market open.
That being said, I’ll keep it on my watch for today, even tho it has broken the zone to see what happens with it. If another entry signal is presented I’ll probably act on it.
Anyway, that’s my watch for today!
I’m still going through Margin of Safety by Seth Klarman, I’m around 80% done.
It’s a great book for anyone looking to learn more about value investing – what numbers you should be looking at – why has it been under performing other styles recently (even tho it was written in the 90s) – the craziness within the market participants – gives ideas where as to look for potential investment ideas etc.
Basically everything an aspiring value investor would want to know.