Positioning myself with greater momentum in Forex trading
It will come in the sense that I can’t influence as long as I can ride that wave that’s a good thing because if I have a strategy based on that I’m always keeping track of where the money is so I think we can all agree that it’s a very good thing a very good system so it has All the complexities so how day comes into this so what we’re going to do now we’re going to go into the charts and show you some examples and see what the commitment side of things is like why do you need more small commitments it doesn’t matter how good that one-on-one date is that doesn’t require full commitment in forex.
Positioning myself with greater momentum in Forex trading
It’s the same thing with people’s trades, they get tick, tick all the stars line up on risk and you’ve probably done that many times because you’re reacting to one trade, adjusting to one idea without thinking about what it looks like from a technical standpoint to see that Commitments where the market permits you to participate over the long term, and that leads to what I talked about which is letting the winners run.
You have to see the commitment first so you can let those winners run there are two sides to this so let’s get into the technical details anyway, showing you some of the right stuff this was the group I was talking about so you’ve got the euro and the Australian dollar And the kiwi dollar and the sterling dollar but we have day so when I talk about commitment.
You should know what commitment looks like in Forex.
What I mean is you should know what commitment looks like and this is where I would hedge this either way we know for a fact and if you don’t already know this will help you out with what would happen if there was no day in just one candle but if it moved DX to the top of this range to fill these gaps, you can now see very clearly that you have this gap between this major high at the top of the range, you have this gap between them this area where price will naturally head to that area, now you have a bearish pullback here to this bottom, you have a significant low here that is still a potential target.
And I’ll explain this hedging game how it can help you but then you also have the bigger picture so we know it’s possible we could go both ways this is kind of stating the obvious but it’s about what it looks like as someone would say buy or sell But it’s different and how do you predict in the first place for almost eight years, I’ve predicted almost every run on day, go back to all my webinars, you can see it from early on.
How can hedging in Forex help you?
It’s about choosing direction and how you can help with that through positioning, so if we look at this bigger picture here, what have you got this downward geometric golf and you have your upward geometric golf if you measure this quick little tip here if you measure This you can see 50% more than 50% of this bullish candle closed higher than the bearish candle.
And this is your first clue now because we had the possibility of heading to that bottom, and we needed to then continue on a lower time frame to confirm that when it goes down like this and then it closes bullishly on the weekly level above that and then it closes above or equal to the previous bearish drop, and that’s to Pretty much your high commitment there, so we’ve now fallen into the category of now statistically more likely to move higher than not the problem, the problem is happening right here, you said statistically much higher and more likely to move higher.
How does a bullish close benefit you in Forex?
What happens next is let’s say there’s a 10% chance that we’re going to go from here to here to continue clicking on this low and it’s still possible, you’ve accepted that 10% is the problem, you haven’t accepted that there’s a 100% chance of 10% happening, and that’s the problem In people’s minds which causes hesitation in trades and so on, so this is a little guide you can look at here, so the market is telling you a story and I was talking about this in the middle of the week as we were heading towards a close as we were looking at a very bullish close.
I talked about this closing above this area or equal to here this is where we’re going to start to see signs of real commitment, why am I telling you this, why is this important? Well, you have to go to the daily to be able to analyze something, so if we look at the daily time frame here the daily chart will give us a little bit of a clue as to whether there’s a possibility that we can come back from here a little bit lower and then go to this bottom.
Summary
I will confirm that of course with some lower time frames like H4 like time frame 1, it will be very clear that it’s a hedging play, so again, I’m not marrying that good idea because the Dxy is bullish on the weekly and it should be heading higher, no that’s not the case We do things about understanding like what I said on the whiteboard, what it looks like when the big players get involved and where the traps are, so that’s where I would see a trap.
