Risk on my core book = short EUR in one form or another.- Recent new low of sell-off achieved today at 1.3839. Previous low was at 1.3850. Assume new down leg about to begin.
- Put on small 20% increase in overall short position on break of 1.3850 (NFP event risk tomorrow notwithstanding).
- Monthly : 1.3667 next chart point. Not expecting this to contain the sell-off though.
- Weekly : Bear flag objective is 1.3654.
Addendum 8:39 pm : Calculation of bear flag objective- Length of flag pole = (1.5144-1.4216) = 0.0928
- Bear flag sell-off start point = 1.4582
- Assume equi-distance downside objective = (1.4582-0.0928) = 1.3654
- As a trend trader, I would not assume the sell-off ends at 1.3654. Plan to maintain a core short until chart pattern shows a bottom action. Ride the trend!
2 comments:
Hey TS,
Always good to read your charts, I am constantly learning something from you.
I want to know, how do you calculate the 'bear flag objective' from the chart, as you have done in the weekly EU chart here.
Thanks.
Pandu
Pandu - see addendum.
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