All right, everybody. We were looking at the British pound. I just bordered a video, where I think I spent 15 or 20 minutes doing a lot of teaching and whatnot, and we’ve gotten feedback lately that time is of the essence. So, what I’m trying to do is to really cut down on the amount of time that I spend in commentary or in other things unrelated to actual positions.
And we’ll send out some surveys on this to get some better data, but lately the emails have really been pushing us, that, you know, “Hey, Mac, I’m pressed for time, so let’s just get straight to business.”
Yesterday, we were talking about watching the market coming into support, and really that happened all throughout this area here on the 30th, yesterday. Today, it was really more of a follow through day, where we saw the pound get into a trading lane for most of the day, which really does make for some good trading if you’re sitting in front of the screen.
But, if you’re a counter trend trader, sometimes these can be a little bit frustrating, because you don’t get signals until later in the day. This came in really about 4:00, the channel started to from around 4:00, and by 7:00 a.m. Eastern was fully put in. So anyway, take that for whatever it’s worth.
We are still in support, so let’s go ahead and focus on our daily bars here. The support zone, remember, that we’re looking at, realistically runs from the lows… Let me just run this across first. It runs from the lows here from early in February to the middle of February, and then also in the beginning of March.
We had a lot of consolidation down here. We had all of these probes into this area that were pushed back. So, what that means is there are quite a few traders that were active in this price zone.
What I’m waiting for here is going to be another probe down into this area before the market starts to move up. This is the, what I call a W bottom. Whoops, let me use magenta. And by “W,” I mean literally, the letter “W.”
What I’m looking for is something that looks like this. If the market is aggressive, you’ll see… Whoops, that was a little bit too far. You’ll see the market form the “W,” where the right side is much higher than the left. And all that represents is that buyers have flooded into the market.
And so what I’m focusing on is the top end of my trading, or my support zone here at about 4250. We need to watch out for that on a counter trend basis. However, I think because of this last little channel that is formed on the hourly, we’ve got a good opportunity, if the top end of this channel holds coming into the London session, for a very nice even autopilot trade as the market tries to move itself up.
Because we’re getting so close to 4400, I think we’ve got to approach this in two ways. Number one, if you’re in front of your screen, the first entry 4385, you’re getting in just below that 4400 level, hoping for the market to make a quick push above it.
If you can’t be in front of your screen, and you’re looking for an autopilot trade, you’ve got to realize that this can be a bit risky, because the market might bang against 4400 and then come right back down. And so you’re going to want to give this one a little bit of room, coming in above 4400 by 15 pips at the most, I think is going to be prudent. Again, it really is a guessing game at that point.
Let me emphasize this maybe in a different way. It’s not the best autopilot trade that’s out there. This is really a trade that works better if you are sitting in front of your screen. I think that this momentum that’s behind the market is what makes it even a worthwhile autopilot trade at all.
Now, looking for short trades below 4250 is absolutely going to be a good opportunity coming into tomorrow’s London session, and even into New York. And then absolutely if the market does get down around 4130, that is the area for autopilot trades going for the short side.
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