In today’s live trading session, we went over the consolidation in the markets and how to trade it. We then went over our brief prediction for tomorrow’s NFP release.
This morning we went over several examples of consolidation and indecision occurring in the markets. We first showed the US Dollar Index which has printed a long-legged doji, a candle commonly known to represent indecision. We then showed the lack of a trend in EURUSD and GBPUSd due to the consolidation in the DXY. Many of the Pound pairs have also shown indecision by printing moves in both directions.
Due to this consolidation, we have elected to sit on our hands. There is no point in forcing a trade to only have it go in drawdown or turn into a loss. Once a trader can resist the urge of being in a trade for the sake of being in one, they have reached maturity that only some traders can reach. We still have the pending setups from earlier in the week that we can wait for, in addition to the short trade for EURNZD that was discussed today.
As tomorrow is the Non-Farm Payroll release, we will be very selective about the trades we enter. Minimizing risk and maximizing profit is the ultimate goal. We will be active on the charts during the Japan and Australian session in case a setup becomes active. As always, be safe and trade responsibly!