Last week we saw some major moves in the market and many of them were around the Brexit market news. The UK held a referendum on whether or not they should remain in the EU and talks had been going on for weeks about the uncertainty, especially in the markets. One thing was certain and that was that there would be an impact on the markets. Lots of pips were made but it was all based on supply and demand not the news. Check out the details below:
I've said it before and I'll say it again, I do not consider the news when trading. I trade based on what I see on the charts. I heard some traders say that because of the likely volatility that would be in the markets during Brexit week, they would stay out all together as it was safer.
Trading is all about taking risks, so as long as the risks are within certain boundaries like a knowledge of supply and demand with a solid trading plan then there shouldn't be a problem.
Here's some of my analysis.
Below is a weekly chart of the GA. You'll notice the supply level marked in red and the demand level lower down marked with solid and dashed lines in blue. You will also see the blue rectangle in between though it may not be clear why on this time frame.
Price had left supply and the path was clear for a ride back down. You can see that price however stopped and begain to rally. If you look at the daily chart you'll see why:
Price hit demand and began to rally. The plan was to wait for price to rally up before signalling a move back down to the weekly demand below at which point I'd look to short. This is what I discussed with the premium members.
As the week went on, price did as I thought it might. Price rallied up and indicated that it may fall so I looked to enter.
There's a very good reason why this was all I needed to see for an entry so when I saw it, I took the trade according to my rules. I didn't know what would happen next, I didn't have any inside information, I didn't know there would be a crash. All I knew is a setup came up that met my rules and I was prepared to take the trade whatever the outcome. That is all we can do.
Boom! Over 1000 pips in a single trade.
That wasn't my only winner this week but it was definitely the biggest. I did have a loser too but that pales into insignificance when compared to the gains.
I won't go into all the details on the other trades but I will show you these:
I don't know what else to say really. Stick to the plan and the wins will be steady. Occasionally there will be some monster gains too.