Weekly commentary 8 Flashcards
What’s significant about whole number figures?
These are institutional levels. These levels are sensitive because large transactions take place with currencies everyday.
Multi national companies settle transactions everyday, and these transactions are settle at whole number levels.
What’s the difference between the breaker and the mitigation block?
The last leg of the breaker block breaks the previous low or high.
How do you determine whether to trade EURUSD or GBPUSD?
Always trade the weaker of the 2.
Use the EURGBP to determine which of the 2 is the weakest.
What’s significant about mitigation and order blocks?
Mitigation blocks are always paired with an order block. Price is more likely to trade to the mitigation block than the order block though, so it’s best to use the mitigation block for entry.
Why is the midnight candle important?
When you’re short, you always want to be short above the midnight candle where it lines up with an imbalance, or any other confluence.
Why are markets generally flat from 15:00?
Markets are generally flat from 15:00 because the bond market closes at 15:00. The bond market is essentially how the interest rate
levels are generated in the economy, and interest rates is the underlying driver of the markets. SO if interest rate close, the forex market goes to bed.
What should you expect when the weekly bias is bearish?
When a week is bearish, there’ll always be a run higher to raid stops before price moves lower.
When are the significant intraday highs and lows made?
During the London and New York sessions.
What should you do on Monday’s?
Try not to trade. Rather use Monday as a data collection day.
It will will give you a view on how the week will unfold. It will tell you who’s been attacked, and who’s been swept, sellers or buyers.
Why is is helpful to know whether buyers or sellers are being attacked?
Try to anticipate whether buyers or sellers are in profit. If move move up is clean with no sellside liquidity sweeps,, then buyers are most likely in profit. If buyers are in profit, wait for the buyers to be taken up before shorting.
What should you do when an imbalance on EURUSD and GBPUSD pairs might not be completely rebalanced?
Always use the DXY as a guide when trading EURUSD and GBPUSD. Sometimes the imbalance on USD pairs might not be completely rebalanced, but you could find that the imbalance on the DXY has been rebalanced. If that’s the case, then use the DXY as confirmation for your trade setup.
