Sive Morten
Special Consultant to the FPA
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so, basically in the last days we've been waiting for XOP 1.3133 to be reached and from which would be recommended a long term short position with tp 1.23?
or XOP 1.3133 would be just an area to watch for short term sell signals?
or both?
sorry if my question is stupid =)
Hi Lucas,
your question is not stupid and never hasitate to ask...
The main rule in all this staff - wait, when the market will show what it intends to do. Of cause, probably you can enter short without any confirmation, but this is much more risky. Better to wait for something - bearish engulfing, DRPO on lower time frames etc...
We are dealing with probability. For now I do not see any confirmation that market will go right to 1.2350. But odds suggest that market should at least bounce from 1.31-1.3130. That's important.
Second, I can't predict reversal point pips-to-pips. It's just imposible to do. And XOP it just a beacon, ok? Market have made a move on current week from 1.2750 to 1.3110 aprox. and we've suspect that and wrote about it in our weekly research in the beginning of the week.
So, what the conclusion - wait for some bearish signs around XOP area. When daily trends turns bearish, may be there we'll see some thrust down on lower time frames - we can enter short. Personally I will be waiting, until see some signs of bearish move starting...
Sive.