A trade target in any financial instrument represents a point of alignment to a distribution, an average. A target is a settled price, a comfort point, a location that must achieve its destination by mathematical standards. A price lacks any other choice except to align and reach its price target.
W trade on the assumption the market is correct when in reality, the market is always wrong and this is what allows for off kilter prices to trade to a target. If the market was always correct, trading wouldn’t exist. The key is to know which market price, currency pair or what financial instrument offers the best trade profit.
A settled price or price inside a specific comfort zone lacks a meaningful trade because its price is correct. A correct market price must allow time to travel to its off sync destination before a trade is worthy. This takes time especially in today’s non volatile markets. The key is to find the most non correct price in order to trade an easy price target.
A trader married to a particular currency pair or financial instrument must view prices as off base to alignment then off base back to alignment. If an off sync price achieves alignment then naturally it must travel to off kilter again. This means for example , long and short is identified by long alignment and short off kilter.
USD/CAD and CAD/JPY offer such multiple trades this week
For the week, here’s a few trades
EUR/USD watch break 1.1054 then 1.1160, 1.1266 and a massive brick wall at 1.1307 and 1.1337.
For the week, big line break 10.6975, below targets 10.6670 and 10.6362. Long term target 10.1092
Strategy. Short 10.8083 and 10.8142, to target 10.7588. Must cross 10.8083, 10.8007, 10.7854. Short only strategy.
Short entry just before 10.8201.
Break Point 9.8854, below targets 9.8472 and 9.8090. Longer term target 9.4172.
Strategy. Short 9.9904 and 10.0000 to target 9.9618. Must cross 9.9809, 9.9713 and 9.9663. Short only strategy.
Shorts just before 10.0382
USDCAD. Break Point 1.3267, below targets 1.3186, 1.3161 and 1.3149
Strategy. Short 1.3321 and 1.3348 if seen to target 1.3270. Must cross 1.3294. Short below 1.3267 to target 1.3186. Must cross 1.3240 and 1.3213. Long 1.3186 to target 1.3253. Must cross 1.3213 and 1.3240. Short only strategy.
CADJPY. Break Point 81.29, above targets 81.76, 82.15 and 82.58.
Strategy. Long 80.41 and 80.20 if seen to target 81.20. Must cross 80.41, 80.85 and 81.02. Long above 81.29 to target 82.36. Must cross 81.72 and 82.15. Short 82.36 to target 81.50. Must cross 82.15 and 8172. Long only strategy.
Break Point 3.9251, below targets 3.8943 and 3.8635. Longer term target 3.7381.
Strategy. Short 3.9559 and 3.9713 to target 3.9328. Must cross 3.9559, 3.9405. Short only strategy.
Shorts just before 3.9867. Watch break 3.9251 and take this short immediately.