I look at the larger Macro picture prior to taking trading opportunities. When I think I have established a trading opportunity and a trend I will then execute my technical strategy as we trade from the entry point to the target.
March (End date TBC) [GBP AUD]
Persistent inflation in the UK and higher interest rates Lower Inflation in Aus - falling interest rates. Falling Iron Ore price [Aus] Weakning Chinese Economy ASX200 - Weakening Natural Gas - [UK Energy sector] Prices set to rise. Keir Starmer has announced an increase and commitment to defence spending/peace keeping force in Ukraine - boosting demand for the GBP. Tariff Wars -----
Technicals.
I will usually start by risking 2-2.5% on my entry trade and then scale in and add to the position as the market confirms my bias. When the market starts to range I will place limit orders on any breaks outside of the range or use buy/sell stops. Then I will add into my position as much as I can as we head toward target.
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This is going well and will continue to short the AUD